How well does Malaysia manage its risks?

Malaysia ranks high in climate risk quality.

Malaysia’s balanced approach to development, sustainability, and economic growth has landed itself at the 45th spot in FM Global Resilience Index. 

Malaysia's mixed economy includes significant contributions from electronics, automotive manufacturing, petroleum, agriculture, natural gas, and rubber. The services sector, including finance, tourism, and telecommunications, has also expanded significantly.

Over the past 30 years, Malaysia has focused on industrialisation and attracting foreign investment, supported by government policies. 

As an influential ASEAN member, Malaysia invests in infrastructure projects to bolster national and regional economic growth. Despite its mid-rank globally, Malaysia is one of the top three Southeast Asian countries in the Resilience Index, alongside Singapore and Brunei Darussalam. 

With a GDP of $406b, Malaysia ranks among the top 40 globally and is classified as upper-middle income by the World Bank.

Malaysia ranks No. 32 for logistics and No. 53 for productivity, benefiting from its proximity to major trading ports. It ranks No. 20 for inflation, reflecting economic stability, but faces challenges with political risk (No. 55) and control of corruption (No. 49). However, it excels in cyber security, ranking No. 10.

ALSO READ: 30% of Malaysian millennials grasp insurance basics

Despite its focus on fossil fuels and agroforestry, Malaysia ranks No. 67 for greenhouse gas emissions but performs well in water stress (No. 22). 

Its climate change exposure and risk exposure are ranked No. 84 and No. 74, respectively, reflecting a balance between urban development and tropical forest preservation.

Malaysia's high ranking in climate risk quality (No. 48) and fire risk quality (No. 51) indicates strong building standards and fire safety protocols.

Malaysia’s business resilience reflects its commitment to balancing development and sustainability, says FM Global. Property and asset owners can find reassurance in Malaysia's resilience fundamentals while being mindful of evolving climate risk challenges that could affect the region’s prosperity.