Abstract
Floods are the most common disaster occurring in many parts of the world. Malaysia is historically a flood-prone country, but a combination of climate change and urbanization has seen the country experience increasingly frequent and severe floods in the recent decades. The estimation of flood damage is an important component of risk-oriented flood design, risk mapping, financial analysis, and comparative risk analysis. However, research on flood damage modeling especially in commercial retail business has not received much attention in Malaysia. This study has developed a model to estimate cost of flood damage in the commercial retail business sector. The 2008–2013 Malaysia flood data have been used in developing the model. This includes data from three states in Malaysia, namely, Kedah, Kelantan, and Johor. Data were collected through questionnaire, personal interviews, and site visits from 417 respondents. Regression modeling was employed to ascertain significant factors and quantify the size of effect of these factors on flood damage of retail business. Results indicate that the flood damage cost model can be used in estimating the cost of damage in the retail business sector in Malaysia. The model is a contribution to the study of economic analysis of flood. This model can be used by policy makers in the planning of future retail business from the aspects of flood preparation and mitigation.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Chan, N. W. (2012). Impacts of disasters and disasters risk management in Malaysia: The case of floods. In Y. Sawada & S. Oum (Eds.), Economic and welfare impacts of disasters in East Asia and policy responses, ERIA Research Project Report 2011-8 (pp. 503–551). Jakarta: ERIA.
Dassanayake, D. R., Burzel, A., & Oumeraci, H. (2015). Methods for the evaluation of intangible flood losses and their integration in flood risk analysis. Coastal Engineering Journal, 57(01), 1540001.
Green, C. H., Penning-Rowsell, E. C., & Parker, D. J. (1988). Flood Hazard Management by Public and Government. Paper presented at the first European Meeting of the Society for Risk Analysis. Vienna.
Hewitt, K. (Ed.). (1983). Interpretations of calamity from the viewpoint of human ecology. London: Allen & Unwin.
Jonkman, S. N., Bokarjova, M., Kok, M., & Bernardini, P. (2008). Integrated hydrodynamic and economic modelling of flood damage in the Netherlands. Ecological Economics, 66(1), 77–90.
Joseph, R., Proverbs, D., Lamond, J., & Wassell, P. (2011). An analysis of the costs of resilient reinstatement of flood affected properties. Structural Survey, 29(4), 279–293.
Kazama, S., Sato, A., & Kawagoe, S. (2010). Evaluating the cost of flood damage based on changes in extreme rainfall in Japan. In Adaptation and mitigation strategies for climate change. pp. 3–17. Sustainable Science, 4(1), 61–69.
Kreibich, H., Seifert, I., Merz, B., & Thieken, A. H. (2010). Development of FLEMOcs – a new model for the estimation of flood losses in the commercial sector. Hydrological Sciences Journal, 55(8), 1302–1314.
Lekuthai, A., & Vongvisessomja, S. (2001). Intangible flood damage quantification. Water Resources Management, 15(5), 343–362.
McBean, E. A., Gorrie, J., Fortin, M., Ding, J., & Moulton, R. (1989). Flood depth-damage curves by interview survey. Journal of Water Resources Planning and Management, 114(5), 613–634.
Merz, B., Hall, J., Disse, M., & Schumann, A. (2010). Fluvial flood risk management in a changing world. Natural Hazards and Earth System Sciences, 10, 509–527.
Messner, F., & Meyer, V. (2004). Flood damage, vulnerability and risk perception – challenges for flood damage research. In J. Schance, E. Zeman, & J. Marsalek (Eds.), In NATO advanced research workshop on flood risk management: Hazards, vulnerability, and mitigation measures. Ostrov: Springer.
Meyer, V., & Messner, F. (2005). National flood damage evaluation methods: A review of applied methods in England, The Netherlands, The Czech Republic and Germany. Retrieved from https://www.cepri.net/tl_files/pdf/.
Nicholas, J., Holt, G. D., & Proverbs, D. G. (2001). Towards standardising the assessment of flood damaged properties in the UK. Structural Survey, 19(4), 163–172.
Samwinga, V., Proverbs, D. G., & Jacqueline, H. (2004). Exploring the experience of UK homeowners in flood disasters. In COBRA 2004, 7–8 September 2004, Leeds. https://doi.org/10.1108/17410391111097438.
Scawthorn, C., Flores, P., Blais, N., Seligson, H., Tate, E., Chang, S., & Lawrence, M. (2006). HAZUS-MH flood loss estimation methodology. II. Damage and loss assessment. Natural Hazards Review, 7(2), 72–81.
Smith, D. I. (1981). Actual and potential flood damage: A case study for urban Lismore, NSW, Australia. Applied Geography, 1, 31–39.
Smith, D. I. (1994). Flood damage estimation – a review of urban stage-damage curves and loss functions. Water SA.
Tang, J. C. S., Vongvisessomjai, S., & Sahasakmontri, K. (1992). Estimation of flood damage cost for Bangkok. Water Resources Management, 6, 47–56.
Thieken, A. H., Müller, M., Kreibich, H., & Merz, B. (2005). Flood damage and influencing factors: New insights from the August 2002 flood in Germany. Water Resources Research, 41(12), 1–16.
Acknowledgment
The authors wish to thank the Ministry of Higher Education, Malaysia, for funding this study under Long-Term Research Grant Scheme (LRGS/b-u/2012/UUM/Teknologi Komunikasi dan Informasi).
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Abdullah, F., Mohammad, S.N., Mohamad, J., Ahmad, M. (2019). The Economic Model for Flood Damage Cost in Retailing Business in Malaysia. In: Mat Noor, A., Mohd Zakuan, Z., Muhamad Noor, S. (eds) Proceedings of the Second International Conference on the Future of ASEAN (ICoFA) 2017 - Volume 1. Springer, Singapore. https://doi.org/10.1007/978-981-10-8730-1_51
Download citation
DOI: https://doi.org/10.1007/978-981-10-8730-1_51
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-10-8729-5
Online ISBN: 978-981-10-8730-1
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)