Asia's natural disasters must not become financial crises

Singapore - The devastating flooding in Nepal has once again underscored the severe human and economic consequences of climate change. While the immediate focus must be on saving lives and supporting affected communities, the disaster also illustrates how natural hazards can rapidly escalate into broader economic shocks. These events have distinct causes, and no single disaster can be easily linked to El Niño or climate change.

However, the World Meteorological Organization predicts a powerful El Niño event will peak between August and October, raising the odds of above-average temperatures globally and significant changes in precipitation patterns. In Southeast Asia, El Niño often leads to drier weather, raising the risk of drought, wildfires, and haze, though the impacts differ across nations and seasons.

For policymakers, the urgent task is to prepare for the economic ripple effects unleashed by extreme weather events. Droughts, floods, and heatwaves can ravage crops and infrastructure. In nations with insufficient food reserves, fragile logistics, and heavy reliance on imports, these natural disasters pose a grave threat to financial stability.