Adaptation through Water 2025

4.4 (34%)2.3 (18%)2.3 (18%)2.2 (17%)1.4 (11%)0.3 12.9 Philippines Thailand Viet Nam Indonesia Malaysia Other SEA countries1Total$13 billion of investment is required by 2030 to enhance SEA's adaptation and resilience capability for flooding Total investment required, per country by 2030 ($ billion and as % of total SEA investment required) Cumulative investment required to tackle flooding in Southeast Asia (SEA), 2025-2030 FIGURE 4 Note: 1. Other SEA countries (Brunei, Cambodia, Laos and Myanmar) are extrapolated by GDP %. Flood impact for Singapore is negligible in the analysis; The estimation did not include long-term climate risk, e.g. from sea-level rise. Sources: UNESCAP , World Bank, IMF, BCG analysis.10 Methodology to determine the potential market for flooding solutions in Southeast Asia BOX 1 To arrive at the $13 billion total in Figure 4, BCG analysts estimated losses due to flooding in six of the region’s major countries (Indonesia, Thailand, Malaysia, Viet Nam, the Philippines and Singapore). Analysts multiplied each country’s average annual loss by its “flood climate factor,” a value representing both the projected change (increase) in the number of days with more than 20 mm of precipitation and the projected increase in precipitation events lasting at least five days. For the remaining countries in the region, analysts extrapolated loss estimates. Next, for each country, BCG computed the cumulative loss over the six-year period 2025– 2030, accounting for inflation. From there, analysts estimated the potential adaptation market size by 2030, both in terms of the market for total loss protection as well as the market for total adaptation solutions. Figure 5 provides an example of this approach, using data from Thailand.