28/01/2026

WEDNESDAY | JAN 28, 2026

5

‘Flood insurance lacking among Malaysians’

Govt urged to ban herbicide ingredient

Ű BY T.C KHOR newsdesk@thesundaily.com

GEORGE TOWN: Regulatory approvals for glyphosate in Malaysia – an active ingredient in hundreds of herbicide products widely used on plantations and farms – were based on a flawed and compromised safety study, the Consumers’ Association of Penang (CAP) has claimed, as it calls on the government to ban the herbicide. CAP president Mohideen Abdul Kader said regulators had relied on a paper later exposed as “fundamentally compromised and ghost-written by industry insiders”. “The report was retracted in December last year, undermining the credibility of the approvals that were based on it.” On Jan 14, CAP submitted a memorandum to the prime minister, the Agriculture and Food Security Ministry, the Natural Resources and Environmental Sustainability Ministry, the Department of Biosafety Malaysia and members of the Pesticides Board, urging a nationwide ban on glyphosate and glyphosate-based herbicides. Mohideen claimed the study used to defend glyphosate’s safety was riddled with undisclosed conflicts of interest and selectively presented scientific data, including on carcinogenicity. “Had the study’s ethical and scientific issues been identified earlier, glyphosate could have faced stricter regulations, or even an outright ban, much sooner.” CAP emphasised that its concerns over the chemical were first raised in 2020, insisting that its latest call was not “new alarmism”. The group cited numerous studies linking glyphosate exposure to a range of health risks, including probable cancer – particularly non Hodgkin lymphoma, genotoxicity, endocrine disruption, oxidative stress, gut microbiome damage and liver and kidney toxicity. CAP also highlighted Malaysia’s approval of more than 20 glyphosate-tolerant genetically modified (GM) foods for import and consumption, adding that herbicide residues could enter the national food supply. Mohideen also said the International Agency for Research on Cancer classified glyphosate as a probable human carcinogen in 2015. He cited a study by the Centre for Research of Innovation and Sustainable Development at the School of Engineering and Technology at the University of Technology Sarawak in Sibu, which found GM contamination in soybean products, with 57 out of 65 samples testing positive for the glyphosate-resistance gene. RM34m recovered from scam activities KUALA LUMPUR: Home Minister Datuk Seri Saifuddin Nasution Ismail said RM34 million from scam activities was successfully recovered last year, a significant increase compared to RM508,479.39 recorded in 2024. He said the success was the result of the 24-hour operation of the National Scam Response Centre, which previously operated during office hours, as well as the increase in staffing. “The (amount of) money we (recovered) was (made possible) using Penal Code Subsections 424A, B and C, as the money failed to be transferred layer-by-layer. “According to the data we collected from complaints, we recorded a total of RM542 million in losses from scam activities last year,” he said during an oral question and answer session in the Dewan Rakyat yesterday. He was responding to a question from Puchong MP Yeo Bee Yin on how many individuals had been charged and convicted under the new Penal Code Subsections 424A to 424D to combat mule accounts involved in frauds, and how many affected individuals had successfully recovered their money. Saifuddin Nasution said for Subsection 424A, 51 cases have been reported, with 20 cases charged in court while three were classified as no further action. – Bernama

PETALING JAYA: Flood insurance coverage remains alarmingly low among Malaysian households, even in high-risk areas, leaving families vulnerable to devastating financial losses, Bank Negara Malaysia (BNM) has warned. The central bank said floods are the country’s most frequent and damaging natural disaster, accounting for about 85% of all disasters since 2000. “Scientific projections indicate that both the frequency and severity of flooding are expected to rise with climate change, putting more households at risk of financial loss,” BNM said in comments made to theSun . “During the major floods of 2021, roughly two-thirds of total losses, equivalent to about RM4 billion, were uninsured. “The pattern mirrors trends in many emerging Asian economies, in which only a small proportion of natural disaster losses are typically covered, leaving families exposed to Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com o Protection gap exposes families to financial stress during disasters: BNM

flood coverage. The bank also highlighted the Relief and Adaptation Facility programme, which provides households and businesses with rapid relief financing and long-term support such as flood-proofing and climate-resilient investments, to help withstand future climate risks. “Rising climate risks could lead to higher premiums over time, potentially making protection less affordable and widening the existing protection gap. “The financial sector plays a crucial role in supporting household resilience by improving access to suitable and affordable protection solutions, strengthening risk assessment and enhancing consumer understanding.” The central bank is working with insurers, takaful operators, government agencies and partners through initiatives such as the Financial Education Network and the joint committee on climate change to boost financial literacy and provide detailed flood risk data. “If you live in an area exposed to flooding, flood coverage should be treated as essential protection rather than an optional add-on. “Start with what is affordable and build your protection over time. Insurance and takaful cannot remove risk, but they could help reduce financial shocks and support faster recovery when disasters occur.”

significant financial stress when disasters strike.” While many Malaysians hold some form of home insurance or takaful , BNM emphasised that flood-specific coverage remains much lower and is far from universal, even in high-risk areas. “Flood protection uptake remains modest, as coverage is usually offered as an optional add-on rather than a standard component, requiring homeowners to make an extra decision and pay additional premiums. “Many policyholders assume standard home or fire insurance automatically covers floods and other natural disasters. “In reality, flood coverage is commonly excluded unless specifically added, leaving households unintentionally underinsured despite believing they are adequately protected.” The central bank also said affordability is another key barrier, adding that households with limited budgets must often weigh protection against more immediate financial priorities. To improve access, it supports initiatives such as Perlindungan Tenang, with annual premiums of RM50 to RM75, and the Perlindungan Tenang Voucher, introduced in September 2025. BNM said eligible recipients could use a RM30 voucher to purchase affordable insurance and takaful products, including

‘Lack of coverage creates cycle of financial fragility’ PETALING JAYA: Many households are sitting ducks for floods, with low insurance uptake leaving families exposed to hefty, unexpected losses, economists warn. “This could crowd out spending on development priorities such as healthcare, education and infrastructure, and may complicate fiscal consolidation efforts.” “This deepens existing socioeconomic gaps, hampers upward mobility and reinforces intergenerational vulnerability.” BNM also said affordability is another key barrier, adding that households with limited budgets must often weigh protection against more immediate financial priorities. – BERNAMAPIC

Mohamad Idham said perceptions of high premiums relative to income, or unclear and complex coverage terms could discourage participation, particularly among lower and middle-income households. “From an economic efficiency perspective, this highlights the need for better risk pooling, targeted premium subsidies for vulnerable groups or public-private partnerships to lower costs and improve affordability. “A more accessible and transparent pricing framework would help raise participation, spread risk more broadly and reduce the long-term burden on both households and the government.” – By Qirana Nabilla Mohd Rashidi

He also said heavy dependence on ad hoc assistance could weaken disaster recovery capacity as funds are diverted to short-term relief rather than proactive risk reduction, resilience building and insurance-based risk-sharing mechanisms. “Low insurance coverage could exacerbate inequality, as higher-income households are more likely to have savings or private insurance, while lower-income families bear losses directly. “When disasters strike, poorer households may lose a larger proportion of their wealth, face longer recovery periods and experience setbacks in employment or education.

Universiti Teknologi Mara economist Dr Mohamad Idham Md Razak said households without insurance payouts are often forced to rely on savings, informal borrowing or high-interest credit, eroding their financial buffers and pushing vulnerable families into long-term debt. “Over time, this reduces their ability to accumulate assets, invest in education or small businesses, and fully recover after each disaster, creating a cycle of financial fragility.” He added that repeated reliance on emergency government aid also increases fiscal pressure, shifting a large share of disaster costs onto public finances.