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Malaysia needs up to RM4 trillion for climate adaptation by 2050, says SC chief
Sep 17, 2026
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3 min read
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Citing the World Bank's Country Climate and Development Report on Malaysia, SC chairman Datuk Mohammad Faiz Azmi said the figures showed that climate adaptation was no longer an environmental consideration but a national economic and development imperative.
“This points to a structural absence in our financial architecture, which has yet to fully recognise adaptation and resilience needs. The consequences are also distributed unevenly,” Mohammad Faiz said in his opening address at the SC-AlBaraka Forum Strategic Dialogue in London on Monday.
He said more than half of the Organisation of Islamic Cooperation member countries are assessed as highly vulnerable to climate impacts, with limited capacity to adapt.
“This is not primarily a shortage of capital, but a returns problem because many adaptation and resilience projects are unbankable.
"Adaptation projects have long tenors and limited standalone cashflows. A seawall generates no direct revenue. A flood-resilient drainage system may sit idle for years,” said Mohammad Faiz.
He also noted that developing countries would require between US$310 billion and US$365 billion annually by 2035 to meet climate adaptation needs; however, international public adaptation finance amounted to only US$26 billion in 2023, a gap 12 to 14 times greater than current funding flows.
Mohammad Faiz said mobilising private capital was critical as the scale of the challenge exceeds what individual countries could meet alone.
He added that private capital currently contributes around US$5 billion a year to adaptation, against an estimated potential of US$50 billion with the right policy support and blended structures.
Mohammad Faiz said a blended finance approach would be critical, and public sector participation, concessional funding, patient capital and risk-mitigation mechanisms could strengthen project viability, crowd in private investors and open a pathway for larger pools of commercial capital.
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