KUALA LUMPUR, May 4 (Xinhua) - Climate change could cost Malaysia up to 8.3 percent of its gross domestic product (GDP) by 2050 under a worst-case scenario, with losses potentially higher, the World Bank said in a report released Monday.
In its Country Climate and Development Report (CCDR) for Malaysia, it said about half of the projected economic impact has already been reflected in lower GDP performance, driven by worsening climate conditions.
The report identified crop losses, flooding and heat-related productivity declines as key drivers of economic damage. Agriculture alone could see production value decline by up to 18 percent by mid-century.
It warned that climate impacts are increasingly cascading through the economy, affecting business continuity, employment, health outcomes and overall economic stability. In an extreme scenario where a one-in-20-year flood coincides with prolonged heat waves, GDP losses could exceed 20 percent in a single year.
The report also noted Malaysia is facing rising climate vulnerability, with more frequent extreme weather events, higher temperatures and rising sea levels.
The report said flooding remains the country's most frequent and damaging disaster, exacerbated by rapid urbanization that has encroached on natural floodplains. By 2100, up to a third of Malaysian towns and cities could be at risk of flash floods.
Heat stress is also emerging as a major concern, with some cities potentially experiencing more than 100 days of extreme heat annually by 2059, according to the report. Tourism is expected to be affected, with international revenues projected to decline by up to 21.3 percent by the 2040s.
The World Bank called for stronger climate resilience measures, including sustainable water management, nature-based solutions and investment in climate-resilient infrastructure. ■
