SPATIAL ASSESSMENT OF THE IMPACT OF FLOOD TO MELAKA’S ECONOMY

Abstract

Melaka used to be a significant trading state in the 16th century. It had attracted traders from
various continents to be its trading partners. Many of these traders had left their footprint enormously. Over
the years, these tangible and intangible historical assets have been an attraction to tourism sector which
contributes significantly to Malaysian GDP. However, due to the impact of climate change and rapid urban
development in Melaka, the flood has posed a risk to Melaka’s economy especially in the tourism sector. To
protect its interest, Melaka has taken proactive measures in mitigating flood incidences. Thus, this study
intends to examine the impact of the flood on Melaka’s economy from 2012 to 2016 using spatial
assessments. This study employs a quantitative approach by using secondary data obtained from the
Department of Statistics Malaysia and the Department of Irrigation and Drainage. Moran’s I, Local Indicator
and Spatial Association and Bivariate Moran’s I were used to analyze the data spatially. Findings show the
mitigation measures taken have relieved the risk posed by floods towards economic activities in Melaka as a
whole.