Climate overtakes economic woes as Southeast Asia’s biggest challenge

The Philippines, Vietnam, Malaysia, and Thailand have named extreme weather as their top concern, putting it ahead of issues like unemployment and economic recession, a study by the ISEAS-Yusof Ishak Institute finds.

Typhoon Man-yi Bicol

The people of Southeast Asia tend to be more concerned about frequent and intense weather events than unemployment and recession, according to an annual study that assesses local views on international affairs and geopolitics.

The majority of Southeast Asians (55.3 per cent) said that climate change and extreme weather events are now the region’s biggest challenge, based on a report by the Asean Studies Centre of the ISEAS-Yusof Ishak Institute. Climate change has overtaken unemployment and economic recession worries, which topped the list of challenges for the past two years.

“The region is increasingly affected by extreme weather events caused by climate change and the economic costs of mitigating and adapting are enormous,” said Sharon Seah, senior fellow and coordinator of the Asean Studies Centre and the Climate Change in Southeast Asia Programme at ISEAS-Yusof Ishak Institute.

“Unlike economic issues, climate change is a long-term challenge that needs to be tackled collectively, not just by a single country, so there is a growing recognition of the importance of collective action,” she told Eco-Business. 

Typhoon-prone Philippines and flood-susceptible Vietnam rated climate change at 70.9 per cent and 70.3 per cent, respectively, as their top challenge. This is followed by Malaysia (55.0 per cent) and Thailand (54.6 per cent) respondents who also say that climate change has impacted them.

Last year’s record-breaking typhoon season in the Philippines – which saw six consecutive storm systems hit the country in under a month – was “supercharged” by climate change. The archipelagic nation was also found to be the second most heat-impacted country in the region, in the last three months.

In September, one of the most powerful typhoons to hit Vietnam in a decade ripped roofs off buildings, sank boats and caused major flooding. Thousands of people were forced out of their homes due to massive floods in Malaysia in November, while record heatwaves killed people in Thailand in May. 

ISEAS report

For the first time since the survey was conducted in 2019, a majority of Southeast Asians (55.3 per cent) say that climate change and extreme weather events are now the region’s biggest challenge. Climate change has overtaken unemployment and economic recession worries, which topped the list of challenges for the past two years. Image: ISEAS-Yusof Ishak Institute

Sluggish economic prospects ranked as the region’s second biggest challenge at 49.3 per cent, followed closely by fears of intensifying economic tensions between the major powers at 48.3 per cent.

For Indonesia, unemployment and economic recession are its top challenges, followed by widening socio-economic gaps and rising income inequality. Unlike the rest of the region, Indonesia’s preoccupation appears to be domestically-driven and not externally focused on intensifying economic rivalry between the United States and China – which are most keenly felt by Singapore’s open economy, along with Laos and Cambodia.

Trust in EU jumps due to stance on climate change

Southeast Asia’s sentiment towards the European Union has improved due to the bloc’s stance on the environment, human rights, and climate change, the survey also revealed.

The EU is the second most trusted major power in Southeast Asia, after Japan. The bloc has seen a significant rise in trust, increasing from 41.5 per cent last year to 51.9 per cent in 2025, while distrust levels have dropped from 34.9 per cent to 27.8 per cent. However, scepticism towards the EU remains strong in Indonesia and Malaysia.

Respondents from these countries believe that the union is distracted with its internal affairs and cannot focus on global concerns and issues.

The bloc has targeted climate neutrality by 2050, with an economy with net zero greenhouse gas emissions. However, it is now under pressure to submit its updated emissions cutting plans, known as the nationally determined contributions (NDCs) for the next decade.

Along with many member states, the EU missed the February deadline to deliver its NDCs and the bloc has drawn scrutiny for delaying the implementation of environmental regulations such as the Corporate Sustainability Reporting Directive (CSRD), which obliges companies to report their environmental and societal impacts. 

Global geopolitical shifts are complicating the fight against climate change. America’s withdrawal from the landmark Paris Agreement is likely to slash finance for developing countries, while its reluctance to support Europe on defence will squeeze EU budgets, potentially diverting resources from the green transition.

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