Municipal Council of Penang, Malaysia

This case study is part of our Asia Pacific city climate financing resource guide.

Penang Island is part of the state of Penang, which also includes a mainland area called Seberang Perai, Malaysia. It has a tropical climate with high temperatures and rainfall throughout the year. Penang’s economy is mainly driven by advanced manufacturing, tourism, and services industries.

• Population: 794,313 (in 2020)

• Total Administrative Area: 30,087 hectares

• Air Temperature: 28 to 31 ºC

• GDP : US$23,652,492,180 (in 2022)

Most significant climate hazard and its impact

Flooding is the most frequent disaster in Penang due to increased rainfall and rainfall patterns, as well as impermeable surfaces that are the result of urbanisation. Penang has already seen a rise in rainfall intensity with the annual rainfall per hour increasing sixfold from the 1990s, from an average of 31mm to 180mm today.

Penang also faces droughts, due to climate change. Penang is a water-insecure state as it depends heavily on water resources that originate from neighbouring Kedah. These droughts impact agricultural production too; at least 800 farmers who own a total of 1,600 hectares of paddy fields are experiencing irrigation water shortages, which is in turn slowing down the crop maturing process.

Adaptation strategies

Penang Island has identified the need for increased green space for water retention, along Sungai Pinang and upstream.

Penang State Economic Planning Unit, Penang Green Council and Penang Institute have initiated the Penang Green Agenda 2030. This will involve technical experts and scientists working on areas of sustainability within the Penang State, such as developing sustainability indicators. Through this agenda, the government wants to formulate strategies which help meet future environmental challenges in Penang while incorporating UN Sustainable Development Goals, to adapt and build a resilient community in Penang by 2030.

Building resilience through nature-based solutions

Main objective

To address climate change impacts, Think City, the Department of Drainage and Irrigation, and the Penang Island City Council have developed Malaysia’s first climate adaptation program, the Nature-Based Climate Adaptation Programme for the Urban Areas of Penang Island (PNBCAP), with other stakeholders. It focuses on increasing the resilience of selected urban areas and reducing the vulnerability of human health and ecosystems to the impacts of climate change through nature-based solutions (NbS). The ultimate aim of the program is to reduce surface temperature and stormwater runoff, increase social resilience, and build institutional capacity.

Armenian Park, George Town. Image source: Municipal Council of Penang

Targeted areas and vulnerabilities

The densely populated urban center of George Town (2,501 hectares) and manufacturing area of Bayan Lepas (2,898 hectares) have been selected as areas of focus based on the impacts of climate change, land use, and the level of community vulnerability.

As the state’s capital and home to a UNESCO World Heritage Site, George Town has certain vulnerabilities such as traditional communities living in heritage areas, a high proportion of low-cost housing and low-income families, and elderly residents making up 21% of all residents in flood-prone areas.

Meanwhile Bayan Lepas contains Penang Airport and a large manufacturing zone as well as residential areas that have underlying vulnerabilities. These vulnerabilities include a high number of manufacturing workers (migrants) and a high concentration of school children that suffer from the increasing urban heat island effect.

Program’s core component and funding

The program has four main components: urban greening, stormwater management, social resilience, and institutional capacity, with a total grant of US$10,000,000 from Adaptation Fund. Each of these components has expected outputs and outcomes with details of the funding required for each.

Community engagement

The program brings together several stakeholders using a community-focused approach, conducting consultations and discussions among them. Stakeholders include UN-Habitat, implementing and executing entities (eg the City Council of Penang Island), the Department of Drainage and Irrigation, and Think City. As the National Designated Authority for the Adaptation Fund, the Ministry of Environment and Water is an important stakeholder too.

The consultation methodology was undertaken in various ways including a series of one-on-one meetings, two workshops, six focus group discussions (FGDs), community open days, and surveys. Their purpose was to gain insights on climate change impacts and self-identified vulnerabilities, and to identify key issues and possible strategies for adaptation. The consultation had a significant impact on the design of the program, while communities developed their awareness of climate change. By being involved in this program, communities also gain knowledge and capacity in terms of urban farming and maintenance of green infrastructure.

Challenges

The program has received support from the community and stakeholders, although it encountered obstacles such as operational constraints and overlapping responsibilities. The main issue that arose during its implementation was the protracted process of accessing funds and getting disbursements from UN multi-lateral entities.