London: Malaysia's climate adaptation needs could range between US$852 billion and US$1.1 trillion by 2050, highlighting the extensive financing required to enhance the country's resilience to climate change, according to Securities Commission Malaysia (SC).

According to BERNAMA News Agency, SC chairman Datuk Mohammad Faiz Azmi referenced the World Bank's Country Climate and Development Report on Malaysia, emphasizing that climate adaptation has evolved beyond environmental concerns to become a vital national economic and development issue. He pointed out a gap in the financial framework, which has not yet fully acknowledged the necessity for adaptation and resilience, resulting in uneven distribution of consequences.

During his opening address at the SC-AlBaraka Forum Strategic Dialogue at the Inner Temple Theatre in the United Kingdom, Mohammad Faiz mentioned that over half of the Organisation of Islamic Cooperation (OIC) member countries are highly vulnerable to climate impacts and have limited capacity to adapt. He highlighted that the issue is not primarily a lack of capital but rather a return problem, as many adaptation and resilience projects are deemed unbankable. He illustrated that projects like seawalls and flood-resilient drainage systems generate no direct revenue and may remain idle for years.

He further stated that developing countries will need between US$310 billion and US$365 billion annually by 2035 to address climate adaptation needs. In contrast, international public adaptation finance was only US$26 billion in 2023, creating a gap 12 to 14 times larger than the current funding flows.

Mohammad Faiz stressed the importance of mobilizing private capital, noting that the scale of the challenge surpasses what individual countries' public resources can address alone. He revealed that private capital currently contributes about US$5 billion annually to adaptation efforts, but with proper policy support and blended financial structures, the potential could reach US$50 billion.

He advocated for a blended finance approach, emphasizing that public sector participation, concessional funding, patient capital, and risk-mitigation mechanisms could enhance project viability, attract private investors, and pave the way for larger pools of commercial capital.