Climate Series 1: Empower Your Leadership with Climate Resilience

Climate Insights

Malaysia is feeling the effects of climate change. Rising temperatures are impacting the nation’s health and raising electricity bills by as much as 10%; increasingly frequent and severe flooding events have incurred losses of RM7.9 billion; and the unpredictability of weather extremes from droughts to storms are leading to conflicts in farming communities and driving fishermen away from the sea.

Despite contributing only 0.7% of global emissions there is a troubling trend, with greenhouse gas emissions in Malaysia increasing by 30% since 2005.

In response, the Malaysian government has reinforced its efforts to fast-track the transition over the past year, issuing the updated National Policy on Climate Change (NPCC 2.0) and developing its National Adaptation Plan (expected by 2026) and National Climate Change Bill, which seek to translate and operationalise national level targets and ambitions to the level of organisations.

These changes in the physical and regulatory environment are driving a dual transformation for Malaysian companies – one of risk and one of opportunity. Across sectors, climate is no longer a distant concern, but a strategic risk factor that intersects directly with credit quality, operational resilience, and long-term growth. At the same time there is ample opportunity to harness resilience opportunities and gain competitive advantage in a rapidly changing landscape.