Participants from Selangor e-Commerce Xccelerator Programme 2023
Exposure inspires a founder to change mindset from local/SEA to global
The Selangor Information Technology and Digital Economy Corporation (Sidec), recently concluded an overseas trip, part of the Selangor E-Commerce Xccelerator Programme 2023 (ECX23). Taking place from 3 to 9 Dec, five companies from the programme took…Continue Reading
A rising number of Chinese chip design firms are placing orders with chip packaging companies in Malaysia in a bid to diversify their supply chains and protect their operations against intensifying US chip export controls.
These Chinese firms are reportedly engaging Malaysian chip packaging service providers to assemble a type of graphic processing unit (GPU) that can be used in artificial intelligence training, Reuters reported on December 17, citing three unnamed sources.
The Chinese requests only entail assembly in Malaysia, a low-technology process that does not contravene any US restrictions, the Reuters report said.
Some contracts have already been agreed, according to two people familiar with the situation. Chinese chip firms are worried that China’s chip-packaging sector will be the next target of the US curbs, the same sources claimed.
Some analysts said if the US imposes restrictions on China’s chip packaging sector, it will do so to achieve two goals: One, to get better control of supply chains for commodity products that can create national security concerns, and two to maintain its broad lead on China in chip technology.
Unisem, a Malaysian chip packaging firm owned by China’s Tianshui Huatian Technology, said it is seeing rising opportunities from Chinese clients.
“Due to trade sanctions and supply chain issues, many Chinese chip design houses have come to Malaysia to establish additional sources of supply outside of China to support their business in and out of China,” Unisem chairman John Chia said according to news reports.
He said most of his company’s customers are from the US. He said he was not too worried about whether his company would provoke the US by packaging GPUs for Chinese customers.
According to Intel, the US accounts for 3% of the world’s chip packaging capacity as it targets mainly the advanced packaging market due to its high labor costs.
The US-based Semiconductor Industry Association said China has 38% of the world’s assembly, testing and packaging market. The figure refers to all kinds of packaging services, from low-end to high-end.
The difference between advanced packaging and ordinary packaging is significant. Ordinary packaging is a low-technology business, which is currently dominated by China and is not hard to replicate elsewhere.
Advanced packaging refers to techniques of combining chips into a package that enhances performance. For example, a “stack” of two 14-nanometer chips can sometimes achieve the performance of a 7nm chip, though at the expense of higher power consumption.
Such “stacking” techniques are also commonly used in the wafer-level packaging of memory chips.
Key players in the advanced chip packaging industry include Intel Corp, Taiwan Semiconductor Manufacturing Company (TSMC), Advanced Semiconductor Engineering (ASE), Samsung Electronics and Amkor Technology Inc, according to a report released by Mordor Intelligence, an India-based research firm.
Intel opened its first international manufacturing facility in Malaysia in 1972. In August this year, the company announced a US$7 billion expansion plan, which will include its first overseas facility for advanced 3D chip packaging in Penang and a chip assembly and testing factory in Kulim.
The Biden administration has adopted a carrot-and-stick approach to try to boost its share in the advanced packaging market, some analysts said.
On November 20, the Biden government said it would commit $3 billion in funding through the National Advanced Packaging Manufacturing Program (NAPMP), which is aimed at building a domestic advanced packaging ecosystem, via the CHIPS for America programs.
The funding will cover six areas including investments in materials; substrates; equipment, tools, and processes; power delivery and thermal management; photonics and connectors; as well as codesign and an advanced packaging ecosystem for the chiplets that can improve performance, reliability, yield and cost in advanced packaging.
The US National Institute of Standards and Technology (NIST), meanwhile, has warned of rising national security risks in the advanced packaging sector overseas.
“Fabricating chips in America but shipping them overseas to be packaged creates supply chain and national security risks we cannot accept,” Laurie Locascio, the under-secretary of Commerce for Standards and Technology and director of the NIST, said in a statement on November 20.
“That is why we envision that, by the end of the decade, the US will be home to multiple high-volume advanced packaging facilities and a global leader in commercial-scale advanced packaging for the most sophisticated chips,” she said.
“This new vision for advanced packaging will enable us to implement President Biden’s Investing in America agenda and make our country a leader in leading-edge semiconductor manufacturing,” US Commerce Secretary Gina Raimondo said last month.
She said in a speech in February that as semiconductors get smaller, chip packaging is becoming increasingly important and should be done locally in the US.
Some commentators said if the US aims next to curb China’s packaging, assembly and testing sector, Southeast Asia will benefit.
“Due to the US curbs, many US chip-making equipment suppliers have shifted their businesses from China to Southeast Asia in recent years,” a Beijing-based IT columnist writes in an article.
“Southeast Asian countries, including Indonesia, Malaysia, the Philippines, Thailand and Vietnam, are also trying to benefit from the United States’ CHIPS and Science Act and capture market shares from China,” he says. “They keep improving their business environment and grooming local chip engineers,” he says.
The writer says Southeast Asia now has a 27% share in the global chip-packaging market, with Singapore and Malaysia seizing market share.
Currently, US companies including Micron, Intel, ASE and Western Digital have set up packaging, testing and assembly units in Penang in Malaysia. Texas Instruments and Infineon Technologies have factories in Malacca while Intel also has a factory in Kulim.
Read: Taiwan deepens squeeze on chip tech leakage to China
Follow Jeff Pao on Twitter at @jeffpao3
Megaproject was the focus of visit to Tokyo
The government is considering granting a 50-year concession to the bid winner of the one-trillion baht Land Bridge megaproject, which is expected to begin turning a profit within 24 years.
The terms were discussed by Transport Minister Suriya Jungrungreangkit as he joined Prime Minister Srettha Thavisin in wooing Japanese investors at the “Thailand Landbridge Roadshow” event in Tokyo, Japan.
Mr Suriya said the bid winner will be granted a single 50-year concession covering shipping lines, logistics, port management, property development and managing industrial investments.
“A new law will be enacted to facilitate the development of the surrounding areas based on a cost-benefit study. It is anticipated to break even in 24 years,” he said.
Given Thailand’s geographic location and comprehensive transportation network, the country is well positioned to become a logistics hub, making the Land Bridge a good investment opportunity, said Mr Suriya.
He said the scheme, which connects Chumphon on the eastern coast along the Gulf of Thailand to Ranong on the Andaman Sea, will reduce journey times for goods and cut logistics costs by bypassing congestion in the Malacca Strait.
Addressing the roadshow event attended by representatives from nearly 30 leading Japanese companies, Mr Srettha said the Land Bridge will be an alternative for feeder ships when traffic in the Strait of Malacca is expected to exceed its capacity in 2030.
The scheme will cut transport times by five days and save at least 4% on logistic costs for goods moving from Japan, China and South Korea to Southeast Asia, Central Asia, and the Middle East.
It will also save three days and at least 4% on logistics on routes between eastern China, Taiwan, Vietnam and the Philippines and Southeast Asia, Central Asia and Middle East countries.
Trade between Thailand, Laos, Cambodia, Myanmar and southern China and the Philippines, Indonesia, Central Asia and Middle East countries, can also expect a significant boost with shipping taking 14 days less and saving about 35% in costs.
According to Mr Srettha, on average the Land Bridge scheme will cut transportation time by four days and save about 15% on logistics across all sectors with about 33.2 million containers utilising the Land Bridge, or about 23% of all containers passing through the Strait of Malacca.
“If the Land Bridge is used for distribution of crude oil in the region, it can reduce costs by at least 6%,” he added.
Mr Srettha said the project is expected to create at least 280,000 jobs for Thais and help the country’s GDP to expand by 5.5% per year when the project is fully operational.
“I have confidence and I’m inviting Japan to join this unprecedented opportunity to invest in this commercially and strategically important project for joint economic growth,” he said.
Initiated by the previous government to drive the economy, the Srettha administration approved its continuation in October.
Comprising deep-water ports in Ranong and Chumphon, a motorway and a railway system supporting both freight and passenger transport and a pipeline network, Mr Suriya said he had discussed opportunities to collaborate on transport during a bilateral meeting with the Japanese Minister of Land, Infrastructure, Transport and Tourism, Saito Tetsuo.
The issues included rail network development under the Mass Rapid Transit Master Plan in the Bangkok Metropolitan Region (M-Map), a 20-year plan for developing primary and secondary public transport networks (2010-2029).
On aviation, he said Thailand and Japan expect to expand aviation cooperation further when the third runway at Suvarnabhumi airport is open. Once the new runway is operational, the airport can accommodate up to 2,800 flights per week, allowing Japanese airlines to increase flights.
According to government spokesman Chai Wacharonke, the prime minister was satisfied with his visit and meetings with the Japanese business community.
On his X (formerly Twitter) account, Mr Srettha said the visit went very well and his invitation for the Japanese investors to invest in Thailand was well received.
There are few visible efforts from Southeast Asian capitals to invest in updating the Association of Southeast Asian Nations (ASEAN) so that it can more effectively perform its existing mandate in a more contested and uncertain world. Otherwise, committing to at least starting ASEAN reform or the development of related Southeast Asia-based mechanisms would seem like a reasonable approach to evolving conditions.
There is a tendency among regional actors to look at ad hoc bi-lateral or mini-lateral arrangements involving both regional and extra-regional actors to address economic and security needs. Examples include Cambodia and Thailand’s enhanced bilateral military cooperation with China, the Indo-Pacific Economic Framework as well as the Malacca Strait and Sulu Sea patrols. Ironically, this could result in more of the global and regional fragmentation many Southeast Asian capitals seek to avoid.
Both Southeast and Northeast Asia historically gained from a United States committed to supporting economic liberalisation and stability, along with a China that came around to accepting and gaining from this arrangement from the late 1970s.
Not all people benefitted from the liberal order advanced by their actions. The Korean War, the three Indochina Wars, China’s support for the Khmer Rouge, as well as the excesses of anti-communism and the War on Terror underscore the very real human costs that came with the prosperity and partial stability.
Whatever its faults, the liberal, rules-based order is now under challenge. Both the United States and China are now more suspicious of each other’s intentions, with the former looking more inward and toward its allies on economic and security terms, even as the latter focuses on its domestic economy and resisting external pressure.
MANILA – Japan and the Association of Southeast Asian Nations (ASEAN) wrapped up a special summit in Tokyo over the weekend, marking 50 years of bilateral relations. Ties between the two sides are deep and friendly thanks to Japan’s pivotal role in post-war economic development and industrialization throughout the Southeast Asian region.
With flagging approval ratings at home, Japanese Prime Minister Fumio Kishida also welcomed the confab as an opportunity to boost his leadership credentials. Last month, he visited Manila and Kuala Lumpur to officially launch a new era of Japanese “realism diplomacy” with a hard focus on military cooperation with like-minded regional states.
For their part, ASEAN leaders also welcomed the opportunity to further deepen strategic cooperation with Tokyo, which has helped create a more multipolar order in Southeast Asia. The 50th Commemorative Summit of the ASEAN-Japan Friendship and Cooperation focused on all relevant areas of bilateral relations, including people-to-people ties and investments.
But rising concerns over China were also a central theme, especially with maritime disputes between Beijing and Manila reaching perilous new levels in recent weeks, raising regional fears of a destabilizing kinetic conflict.
Accordingly, Japan and ASEAN nations zeroed in on “maritime security” cooperation and vowed to “strengthen dialogue and cooperation for the maintenance of maritime security and safety, maritime order based on the rule of law, including freedom and safety of navigation and overflight and unimpeded commerce”, a joint statement issued after the summit said.
Though not naming Beijing directly, the two sides underscored their commitment to “enhance maritime domain awareness as well as cooperation among coastguards and relevant law enforcement agencies, strengthen cooperation on maritime capacity building, and ensure the resolution of disputes by peaceful means, without resorting to threat or use of force in accordance with universally recognized principles of international law.”
Southeast Asian states at loggerheads with China over disputed territories in the South China Sea are expected to be the biggest beneficiaries of new Japanese initiatives in the region, most notably Tokyo’s newly launched Official Security Assistance (OSA) package.
On one hand, Malaysia is set to receive a 400 million yen (US$2.8 million) aid package to acquire “warning and surveillance” equipment. The two sides also signed a new comprehensive security partnership agreement just weeks after Vietnam.
Most consequentially, however, is Japan’s blossoming defense ties with the Philippines amid shared concerns over China’s rising assertiveness in nearby waters. In a new deal, Tokyo is set to provide new radar systems to the Armed Forces of the Philippines (AFP).
But a possible Reciprocal Access Agreement that if finalized would allow for the deployment of Japanese Self-Defense Forces (JSDF) to conduct regular drills on Philippine soil, enhance bilateral interoperability and expand joint activities between the two sides’ militaries would be a bigger salvo across China’s bow.
“We are in agreement that we considered to be extremely significant between our two countries is a Reciprocal Access Agreement that will give us a greater capability in terms of not only security but also in terms of disaster preparedness, alleviation, and adjustment,” said Philippine President Ferdinand Marcos Jr on the sidelines of the ASEAN-Japan meeting in Tokyo.
“And that is something that is I believe is very, very significant and that it will bring to us greater capacity to maintain the peace in [the South China Sea],” Marcos Jr added.
Though a US treaty ally, Japan has largely been seen as an alternative and mainly constructive force in Southeast Asia.
Unlike the US, which is increasingly seen primarily as a military power in the region, post-war Japan has historically relied on its economic prowess to win influence in ASEAN.
This was partly due to Tokyo’s commitment to repent for its World War II atrocities as well as enhance its economic competitiveness by tapping into the region’s comparatively cheap labor and vast natural resources.
And unlike in Northeast Asia, especially in China and South Korea, Japan has been particularly successful in rehabilitating its post-war image in Southeast Asia.
If anything, Tokyo has consistently been ranked as the most favorable external partner for Southeast Asian thought leaders, according to the authoritative annual survey conducted by the Singapore-based Institute for Southeast Asian Studies (ISEAS).
That’s in part because Japan is still the top source of big-ticket infrastructure investments in Southeast Asia. The country’s pre-pandemic new investment pledges were valued at $367 billion – dwarfing China’s $255 billion.
If anything, China’s much-vaunted Belt and Road Initiative (BRI) has run into multiple obstacles, with Beijing’s overall overseas infrastructure investment activities down by some 40% in recent years amid an economic slowdown at home and as well as regulatory bottlenecks in BRI host nations.
There are, however, also geopolitical and ideological reasons why Japan remains so popular in Southeast Asia. Unlike China, the country doesn’t have territorial disputes with any ASEAN nation.
Moreover, although Japan is part of the Group of Seven (G7) nations, it’s still seen as more of an “Asian” rather than a “Western” nation. Japanese leaders refrain from directly criticizing the human rights and democracy records of ASEAN states.
Nor has Japan pressed regional nations to join Western sanctions against key energy-producing nations such as Russia and Iran, both of which have had historically warm ties with many Southeast Asian nations.
Though wary of China’s maritime assertiveness and poor treatment of its own Muslim minorities including the Uighurs, Southeast Asian nations such as Malaysia and Indonesia are even more critical of America’s policy towards the Muslim World, especially in the context of its role in the latest Israel-Hamas conflict.
No wonder, then, ASEAN nations have broadly welcomed the emergence of a more assertive Japan over the past decade, beginning with the long tenure of the late prime minister Shinzo Abe, whose key proteges are currently in charge of Tokyo’s foreign and defense policies.
Prime Minister Kishida, who earlier served as Abe’s chief diplomat, has vowed to continue his mentor’s efforts by launching a new era of “realism diplomacy”, which is focused on forging closer security cooperation with like-minded global players but especially in ASEAN.
To bolster its credibility, Japan is set to double its defense spending as a percentage of its GDP while ramping up its development of next-generation military technology, including sixth-generation fighter jets and long-range missile systems. Vietnamese President Vo Van Thuong visited Tokyo last month, where he openly welcomed a more assertive Japan in a historic speech before the Japanese Diet.
Though highly critical of the West, Malaysian Prime Minister Anwar Ibrahim has also embraced tighter security cooperation with Japan with an eye on China’s assertiveness in the South China Sea. But no ASEAN state has been more enthusiastic in expanding military cooperation with Japan than the Philippines, a fellow US treaty ally.
In 2018, the Philippines hosted a JSDF armored vehicle unit for the first time in the post-war period. Four years later, in another first, Japan deployed fighter jets for joint exercises with the Philippine Air Force.
At the same time, Japan provided multi-role vessels and a whole host of capacity-building assistance to the Philippine Coast Guard (PCG), which has quickly transformed into arguably the most formidable civilian maritime law enforcement agency in all of ASEAN.
Crucially, Tokyo is also exploring a possible Japan-Philippines-US (JAPHUS) trilateral alliance to deter a possible Chinese invasion of Taiwan as well as a potential armed conflict in the South China Sea.
During his visit to Manila last month, Kishida became the first Japanese leader to address a joint session of the Philippine legislature, where he praised the remarkable transformation in bilateral ties over the past decade and vowed a new era of comprehensive partnership.
The Japanese leader also effectively launched Japan’s new Official Security Assistance initiative in Manila, with the Philippines as the program’s biggest beneficiary so far.
Follow Richard Javad Heydarian on X, formerly Twitter, at @Richeydarian
After two frustrating years of Covid-induced economic slowdown, Vietnam bounced back in 2022 with a strong performance — its GDP grew more than 8%.
In 2023, the government hoped that a stronger Chinese and global economy would allow a continuation of export-led growth, including growth in tourism and related services. Projections, or hopes, were for 6% to 7% GDP growth.
But both the world and China proved to have less demand for Vietnam’s exports than hoped. Now even Vietnam’s prime minister is suggesting growth of “around 5%”, which is close to the 4.7% estimated for 2023 by the International Monetary Fund. Exports fell 5.7% in the first 11 months of 2023. For an economy where exports nearly equal GDP, this creates a major growth problem.
Through November 2023, tourism revenue increased 50%, but this was not enough to offset the weakness in industrial output growth, which was only 1%.
While external factors significantly contribute to slower growth, the problems with electricity supply also contributed to the slow growth in foreign direct investment (FDI) realizations. These realizations only grew 2.9% in dollar terms, probably a slight shrinkage in real terms.
The government did several things right.
It managed to increase public investment by more than 20%, providing better infrastructure and more demand. It kept inflation under control and the banking system sound, though problems in the real estate sector continued to weigh on investment, confidence and the liquidity of some exposed banks. Many real estate development companies had trouble repaying or refinancing their corporate bonds.
The visit of US President Joe Biden and the upgrading of US-Vietnam relations to a level equal to that with China encouraged ‘friend shoring’ of FDI and technology transfers.
But the decision of Intel not to expand its already significant chip assembly and testing facilities suggests that though political skill is necessary, it is not sufficient to attract the higher-quality investments Vietnam wants. The government’s emphasis on computer chip production, while understandable, may result in slower progress in cybersecurity and artificial intelligence.
A bigger problem for both FDI and overall economic growth is the relatively weak state of the formal private sector and the lack of skilled labor needed to replace simple factory assembly jobs, which are migrating to countries with lower-cost labor.
Intel decided not to expand in Vietnam due to a combination of concerns about stable electricity, excessive red tape and the skill levels of Vietnam’s university graduates. Losing the expansion of an incumbent and major firm will make it challenging for Vietnam to move further up the value chain to competitive chip manufacturing.
The energy problems were especially surprising because Vietnam Electricity, the state utility, had planned for 8% annual demand growth, while actual electricity use since 2019 had grown only about half as much.
There was excess generating capacity but shortages of coal, leading to over-use of hydroelectricity, maintenance issues and a lack of transmission capacity which culminated in electricity shortages.
While more transmission lines are planned, the hit to Vietnam’s reputation is reflected in the slow growth of realized FDI. More transmission capacity will allow increased use of renewable electricity from central Vietnam, where solar and wind resources are favorable.
This could be important if fuel prices rise again due to shortages in Europe. With El Nino weather patterns threatening a drought in Southeast Asia, more renewable power would allow considerable hydroelectricity to be used when renewables are not producing. This would create a cleaner and more robust electricity system.
If Vietnam can improve its energy, training, and soft infrastructure, its GDP should be able to grow at least 6% annually for the rest of this decade. For 2024, the government growth target is 6% to 6.5%, which is similar to the Asian Development Bank’s July 2023 projection.
While some projections are lower — Fitch has 5.5% due to expected export weakness — the continued movement of some export production out of China should help Vietnam’s exports rebound.
But there may be significant headwinds should both the United States and European Union slip into recession or very slow growth, or if China’s economy continues to depress consumer spending and tourism.
In addition, labor force growth is slowing and surplus labor from rural areas is diminishing. Most of the growth will have to come from more capital per worker and increased productivity.
This will depend on the growth of Vietnam’s formal, domestic private sector. Its share of GDP is only about 11%, much lower than the 30% to 50% in Thailand and China.
Overall, 2023 was a disappointing transition year for Vietnam. If the global economy recovers as central bank monetary policy stops tightening and gradually loosens, 2024 should be better.
David Dapice is a Senior Economist in the Ash Center for Democratic Governance and Innovation at the John F Kennedy School of Government, Harvard University.
This article was originally published by East Asia Forum and is republished under a Creative Commons license.
The Taiwanese economy will end the year with underwhelming economic growth of around 1.2%. One of the key problems has been weak exports due to the high cost of funding globally and excess inventory in the semiconductor and electronic sectors.
The good news is that the worst should be over in 2024 as the US Federal Reserve starts easing in the second quarter of 2024. Beyond the cheaper cost of funding globally, demand for electronics and semiconductors should also improve as inventories have been reduced in 2023. All in all, Taiwan’s growth should more than double in 2024 to 2.9%.
Given better global financial conditions and the expectation of a better export cycle, Taiwanese companies should increase their capex in 2024. As regards foreign direct investment, China remains attractive both for green energy, especially offshore wind, but also for artificial intelligence-related projects.
However, geopolitics are becoming increasingly relevant for foreign investors when deciding whether to bet on Taiwan. In particular, the risk of military conflict in the Taiwan Strait is often discussed in the board rooms of major foreign companies considering Taiwan as an investment destination.
As regards consumption, the policy of raising wage growth to 4% for military, civil servants and public school teachers should offer some support against the background of intense outbound tourism, which takes away part of household consumption
As for inflation, it should continue to decelerate from 2.5% in 2023 to 1.6% in 2024, following global disinflationary trends. However, there are still ongoing uncertainties regarding price volatility in agricultural products and extreme weather, which may bring price spikes.
Still, such a movement should not be a hurdle for the Central Bank of the Republic of China (CBC), Taiwan’s central bank, to start cutting once the Fed does but clearly at a much slower pace since the CBC did not follow the Fed fully on its tightening.
In fact, it seems hard for the CBC to cut rates beyond 1.675% from 1.875% today. This should be positive for Taiwan’s housing market.
Given the faster cuts by the Fed than the CBC, the Taiwan dollar has the potential to appreciate against the US greenback, especially if the tech cycle rebound attracts capital into Taiwan’s stock market.
The spoiler of this rather positive outlook for Taiwan is the geopolitical risk. The first obvious one is the presidential elections in January, but this is not the main issue.
Investors mostly worry about China’s reaction to the potential victory of the incumbent party, the Democratic Progressive Party (DPP), but the key problem is much more structural than the result of the elections and boils down to the future of Taiwan, at least from foreign investors’ point of view.
Going back to the elections, they are unlikely to result in a significant shift in economic policies in terms of the fiscal and monetary stance while derisking policies to diversify the economy away from China might not continue if the Kuomintang (KMT) were to win.
So far Taiwan’s exports to mainland China (including Hong Kong) have declined from 40% on average between 2015-2019 to 35% in 2023. Meanwhile, the US is the biggest source of Taiwan’s export orders and the share has surged from 28% to 32% for the same period. What has not yet happened sufficiently is a diversification of Taiwanese investment and trade toward Southeast Asia.
Moving forward, another key challenge for Taiwan is energy transition. Taiwan’s net zero targets by 2050 seem very hard to achieve in the current circumstances, which may also have consequences for Taiwan’s exports, especially those with large carbon emissions as the European Union pushes ahead with its carbon border adjustment mechanism (CBAM).
All in all, the Taiwanese economy should be better in 2024, both growth and inflation-wise, supported by better funding conditions. The elephant in the room, though, is geopolitical risk, especially in this election year but also structurally. A second major challenge is how to navigate Taiwan’s energy transition given its very bold targets.
Alicia Garcia Herrero is chief economist for Asia-Pacific at Natixis.
Dr Serina Rahman, who is a lecturer with the Southeast Asia Studies Department at the National University of Singapore (NUS) and specialised in environmental issues in Malaysia, told CNA that the implementation of these projects will inevitably take time.
However she acknowledged that delays due to cost cutting measures by the government or the funds not being allocated properly would hurt residents, who are mostly rural folks.
“Good that cash has been allocated to work to alleviate floods. But the process of putting this into fruitful action on the ground will take time,” said Dr Serina.
“But climate change impacts needed to be mitigated a few years ago so until it is done, we will continue to suffer these disasters,” she added.
Amid slow progress for the RTB projects, environmental experts CNA spoke to warned that the effects of climate change are likely to exacerbate the problem.
UTM’s Dr Zulfaqar told CNA that due to Malaysia’s topography, it is susceptible to coastal flooding and flash floods, both of which are increasing in frequency and intensity due to global warming.
He explained that the melting of glaciers and ice sheets will cause sea levels to rise, adding volume to the ocean water and likely to impact coastal areas across Peninsula Malaysia as well as Sabah and Sarawak.
Moreover, flash flooding will also be more frequent as warmer temperatures increase, putting more moisture into the atmosphere that then gets released as rain.
Dr Zulfaqar estimated that based on the climate change projection reports on Malaysia released by the World Bank, floods are likely to occur 20 per cent more over the next five years.
He also spoke about the matter during his presentation on climate change scenarios and water security during the five-day Asia-Pacific Climate Week 2023 in Johor Bahru in November.
Dr Zulfaqar also told CNA that based on his research and data collection, Peninsular Malaysia specifically has already seen increased volume of rainfall between November and January each year.
“This means that the impact of the annual northeast monsoon will be much worse in years to come. Expect more rainfall and if the mitigation efforts are not stepped up, worse floods,” he added.
For some residents, the increased frequency of rain over the last few years has been clearly felt.
Fisherman Sharuddin Hatman, who lives on the banks of the Johor River at Kampung Sungai Telor near Kota Tinggi, told CNA his village has seen more frequent and more intense floods over the last five years.
“It’s been getting worse, and we are so used to floods especially during the year-end that it has become the norm,” said the 31-year-old.
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