SC Launches COFAR Challenge to Drive Climate Adaptation Solutions for Coastal Communities

Student innovation to tackle climate risks on Carey Island through real-world adaptation solutions

Kuala Lumpur, 12 August 2025 – The Securities Commission Malaysia (SC), in collaboration with ICAEW Malaysia, has launched the Coastal Flooding Adaptation & Resilience (COFAR) Challenge.

This Challenge invites university students across the country to develop practical, viable and future-proof adaptation solutions for Carey Island, a coastal community in Selangor facing mounting threats from sea-level rise, storm surges and saltwater intrusion.

Led by the SC, the COFAR Challenge is part of its broader Adaptation & Resilience agenda, which aims to build knowledge, inspire innovation and support long-term climate resilience through the capital market.

Speaking at the COFAR Challenge Webinar, SC Chairman Dato’ Mohammad Faiz Azmi said that the Challenge is one of the SC’s key initiatives to drive climate adaptation. “It brings together students from various fields to find real solutions for coastal flooding, especially along Malaysia’s vulnerable west coast.”

“We believe the ideas that shape tomorrow must begin today – and they must come from the next generation,” he said.

The initiative is jointly organised with ICAEW Malaysia, whose commitment to nurturing future-ready finance professionals aligns with the COFAR Challenge’s goal of integrating financial viability into climate adaptation.

We are proud to support the COFAR Challenge as it empowers the next generation to apply financial insight to real-world climate issues,” said Shenola Gonzales, Head of Malaysia, ICAEW. “By equipping future professionals with the skills to design viable, resilient solutions, we’re helping to embed sustainability and innovation at the heart of finance.”

SD Guthrie (Guthrie), the technical partner for the Challenge, provides site-specific insights. The company owns 79% of Carey Island and has committed to implementing feasible solutions developed through the Challenge.

“As technical partner, Guthrie will provide COFAR participants with guidance on engineering design and knowledge of the Carey Island coast where the challenge site will be,” said Jeffry Faizal Kamaruddin, Guthrie’s CEO of Upstream Malaysia. “Our technical team have conducted a gap analysis of existing flood mitigation infrastructure, such as sea walls, bunds and water management on the island which have proven costly and offer limited returns. Guthrie currently manages over 100 kilometres of bunds around Carey Island as part of our plantation operations.”

Southeast Asia Disaster Prevention Research Initiative (SEADPRI-UKM) the knowledge partner brings deep expertise in disaster risk reduction and strengthens the academia-policy bridge essential for resilient planning.

”The COFAR Challenge exemplifies the kind of interdisciplinary collaboration that is urgently needed to tackle climate threats at the community level.” said Dr. Nurfashareena Muhamad, Head of SEADPRI-UKM. “By integrating science, policy, and finance, we can empower young Malaysians to design adaptive solutions that are not only technically sound, but also locally grounded and economically viable. SEADPRI-UKM is proud to support this initiative as a platform for building capacity and accelerating innovation in climate adaptation.”

Carey Island was selected as the live case study due to its similarity to other vulnerable coastal regions in Malaysia and Southeast Asia. This makes COFAR not just a competition, but a real-world opportunity to shape a community’s future.

Participants will be challenged to combine infrastructure, nature-based solutions, from modular infrastructure and mangrove buffers to aquaculture and eco-tourism. Solutions should mitigate saltwater intrusion, storm surges, and sea-level rise, and include a revenue-generating financial model. The design should be scalable for broader application across Selangor’s west coast.

Finalists will pitch their ideas at the ICAEW Sustainability Summit in November 2025. Winners will receive up to RM50,000 in cash prizes and be recognised at the ASEAN Capital Markets Forum (ACMF) International Conference in November 2025, offering students regional exposure and the chance to contribute directly to Malaysia’s climate resilience.

The Challenge is open to students from all universities in Malaysia and Malaysian students enrolled in universities abroad. Teams should consist of 5-6 team members, including at least one member from the accounting/finance and engineering faculties respectively.