The Economic Model for Flood Damage Cost in Retailing Business in Malaysia

  • Fader AbdullahEmail author
  • Syaidatul Nadwa Mohammad
  • Ja’affar Mohamad
  • Mahyudin Ahmad
Conference paper


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.


Flood damage cost Estimation model Regression modeling Tangible loss 



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).


  1. 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.Google Scholar
  2. 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.CrossRefGoogle Scholar
  3. 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.Google Scholar
  4. Hewitt, K. (Ed.). (1983). Interpretations of calamity from the viewpoint of human ecology. London: Allen & Unwin.Google Scholar
  5. 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.CrossRefGoogle Scholar
  6. 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.CrossRefGoogle Scholar
  7. 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.Google Scholar
  8. 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.CrossRefGoogle Scholar
  9. Lekuthai, A., & Vongvisessomja, S. (2001). Intangible flood damage quantification. Water Resources Management, 15(5), 343–362.CrossRefGoogle Scholar
  10. 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.Google Scholar
  11. 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.CrossRefGoogle Scholar
  12. 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.Google Scholar
  13. 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
  14. 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.CrossRefGoogle Scholar
  15. 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. Scholar
  16. 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.CrossRefGoogle Scholar
  17. Smith, D. I. (1981). Actual and potential flood damage: A case study for urban Lismore, NSW, Australia. Applied Geography, 1, 31–39.CrossRefGoogle Scholar
  18. Smith, D. I. (1994). Flood damage estimation – a review of urban stage-damage curves and loss functions. Water SA.Google Scholar
  19. Tang, J. C. S., Vongvisessomjai, S., & Sahasakmontri, K. (1992). Estimation of flood damage cost for Bangkok. Water Resources Management, 6, 47–56.CrossRefGoogle Scholar
  20. 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.CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Fader Abdullah
    • 1
    Email author
  • Syaidatul Nadwa Mohammad
    • 1
  • Ja’affar Mohamad
    • 1
  • Mahyudin Ahmad
    • 1
  1. 1.Universiti Teknologi MARA Cawangan PerlisArauMalaysia

Personalised recommendations