THE Securities Commission Malaysia (SC) is calling for urgent, market-led responses to the escalating threat of climate change, with its chairman warning that without robust adaptation strategies, the country could suffer significant social and economic setbacks.
Speaking at the Climate Adaptation and Resilience Conference 2025, SC Chairman Datuk Mohammad Faiz Azmi cited recent climate-related disasters—including flooding and landslides in Sabah that killed 13 people and Super Typhoon Ragasa’s destruction across East Asia—as stark warnings of what lies ahead.
“These disasters are a stark reminder that as climate risks manifest and hit home, the human and economic cost can be profound,” he said.
He added that under a 3.2°C warming scenario, Malaysia’s economy could shrink by as much as 46% by 2048, referencing projections by the Swiss Re Institute.
Despite the mounting threat, Dato’ Faiz said that adaptation remains grossly underfunded, and that public funds alone cannot meet the scale of the challenge.
“Adaptation finance must be made more attractive and investible,” he stressed. “Rather than a cost to bear, it is an investment with upside.”
The SC, he said, sees capital markets as critical to building national resilience. The upcoming Capital Market Masterplan 4 (CMP4) will centre sustainability as a core pillar, including efforts to drive adaptation-focused financial solutions.
One such initiative is the Coastal Flooding Adaptation and Resilience (COFAR) Challenge, a national student competition launched to develop viable financial models for adaptation to rising sea levels.
“We want ideas backed by sound financial models. This reflects our conviction that adaptation must be underpinned by finance,” said Dato’ Faiz.
The challenge has drawn 220 students from 29 universities, both local and international, with participation from institutions such as University of Oxford, University of Nottingham Malaysia, Monash University Malaysia, and Universiti Malaya.
“COFAR is more than just a competition,” he added. “It is a pilot for how adaptation challenges can be addressed through a market-based approach—combining science, innovation, and finance.”
Citing findings from Zurich Malaysia, he noted that 86% of Malaysians are concerned about climate change, and among youth aged 18–29, this rises to 90%. Yet over half feel unprepared for events like floods, heatwaves, and landslides.
Beyond domestic efforts, Malaysia is also working regionally under the ASEAN Capital Markets Forum (ACMF) to develop the Adaptation for Resilience (mARs) Guide, which aims to identify and support adaptation projects that offer environmental, social and economic returns.
“Ultimately, building climate resilience is not the responsibility of a single champion or institution. It demands a whole-of-society approach,” he said. “Policymakers must set the direction, regulators provide enabling frameworks, financiers mobilise capital, researchers contribute scientific backing, and communities must be part of the solution.”
Looking ahead to the rest of the conference, Dato’ Faiz encouraged participants to “ask, challenge, propose, and connect,” ahead of a keynote speech later today by Natural Resources and Environmental Sustainability Minister, Datuk Seri Johari Abdul Ghani, who is expected to outline future policy directions.
“Tough questions remain,” said Dato’ Faiz. “How do we de-risk adaptation to attract private capital? How do we measure resilience outcomes? And how do we ensure financing reaches underserved and vulnerable communities?”
“These are questions we must answer—together.” - October 14, 2025
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