Asia's natural disasters must not become financial crises

Singapore - The devastating floods in Nepal have once again underscored the catastrophic human and economic impact of climate change. While the immediate focus must be on rescue operations and aiding affected communities, the disaster also serves as a stark reminder of how natural hazards can rapidly escalate into broader economic crises.

The World Meteorological Organization predicts a powerful El Niño phenomenon will brew between August and October, raising the chances of higher-than-average temperatures across much of the globe and significant alterations in rainfall patterns. In Southeast Asia, this typically results in drier conditions, heightening the threat of droughts, wildfires, and haze. However, the specific consequences of El Niño differ among countries and throughout seasons.

For policymakers, the urgent task is to brace for the cascade of economic repercussions triggered by extreme weather events. Droughts, floods, and heat waves wreak havoc on crops and critical infrastructure. In nations lacking ample food reserves, fragile logistics, and a heavy reliance on a limited number of import sources, the consequences can be particularly severe.