See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/322098484 Property Destruction, Human Losses and Economic Paralysis: Impact Flood in Kelantan Article in Journal of Computational and Theoretical Nanoscience · November 2017 DOI: 10.1166/asl.2017.10157 CITATIONS READS 2 501 3 authors, including: Bayu Taufiq Possumah Jaharudin Padli Universiti Malaysia Terengganu Universiti Malaysia Terengganu 88 PUBLICATIONS 255 CITATIONS 16 PUBLICATIONS 124 CITATIONS SEE PROFILE SEE PROFILE Some of the authors of this publication are also working on these related projects: Zakat and Adequacy of Income View project Modelling SMEs Investment Strategies to Enhance Participation in Oil and Gas Industry View project All content following this page was uploaded by Jaharudin Padli on 11 February 2019. The user has requested enhancement of the downloaded file. RESEARCH ARTICLE Copyright © 2017 American Scientific Publishers Advanced Science Letters All rights reserved Vol. 23,10803-10805, 2017 Printed in the United States of America PROPERTY DESTRUCTION, HUMAN LOSSES AND ECONOMIC PARALYSIS: IMPACT FLOOD IN KELANTAN Zikri Muhamad, Bayu Taufiq Possumah, and Jaharudin Padli School of Social and Economic Development, University Malaysia Terengganu, 21300 Kuala Terengganu, Terengganu, Malaysia. This study attempts to determine the factors of flooding in Kelantan's, especially in areas near the Kelantan River, Galas River and Lebir River. By using the OLS estimator on the primary data in 2014, a total of 400 questionnaires were distributed among heads of household, and owner of business premises in the district of Manek Urai, Dabong, Tanah Merah, Kota Bharu and Pasir Mas. The result shows that income per capita, number of households, distance from the river and willingness to pay can reduce a flood risk. These findings are useful to the policy maker to propose the solution to minimize the flood risk, particularly in area that exposed to disaster.. Keywords: Flood, human losses, Impact Flood, Kelantan caused by continuous rain or river water overflowing onto the 1. Introduction shore or both4. To preview the paper results, household income Generally, Kelantan has a series of large flood history in plays little role in explaining which people experienced a flood. 2004, 2010 and 2012. However, in December 2014 a flood But community with a higher willingness to pay will suffer disaster has hit eight districts in Kelantan which Kota Bharu, fewer losses from the impact of floods. Ordinary least squares Pasir Mas, Tumpat, Kuala Krai, Gua Musang, Machang, Tanah (OLS) estimate indicates that the total numbers of household Merah, and Pasir Puteh. The impact of the disaster estimated are positively correlated with total number of losses in Kelantan. 124,966 residents or 35,894 families have been affected. The whole of 2589 houses stuck or destroyed. 2. Literature Review It is estimated that the costs of damage for an annual flood, Flood disasters are undoubted happen due to the a 10-year flood, and a 40-year flood are USD 0.98 million, unpredictably weather, but also happen due of the mankind. USD 5.87 million and USD 14.34 million respectively. As a Nowadays, human activities that do occur have led to various result, flood management can be costly for government rescue types of natural disasters, including floods. Other factors such and flood relief operation as well as rehabilitation of public as deforestation and reclamation are also among the main works and utilities. Therefore, this study is conducted for causes of flooding. However, there are a number of socio- reducing the flood risk as well as to investigate the factors that economic factors that contribute to the causes of these floods, influence the potential of flood disaster and to propose the such as education, number of household, income, and distance strategies as a solution to preventing a flood. of a house from the river, insurance, and Cost of Risk (CR). According to the report of the Asian Disaster Reduction What makes us worried more about this disaster is people did Center (ADRC, 2015)1, disaster in Malaysia generally consists not concern and take a serious action regarding this problem of flood, landslide, forest fire and haze2. Flooding is one of the while actually they are the main causes for the problem. phenomena that are classified as disasters caused by unusual or Natural disasters are cannot be denied, prevented or extreme weather conditions and follow by days of heavy rain. predicted but the potential of disasters can be minimized. The impact of the disaster could be categorized into two, Recently Asia countries have experienced an increasing namely, the direct and indirect effects. An increase in the phenomenon of a flood5. As point out by the Schumacher and frequency of disasters can increase the amount of damages and Strobl (2008)6, economic development is negatively related to losses to property and emotional disorders3. Generally, floods economic losses. An increase in wealth will reduce the economic losses. These conditions are supported by the __________________________________________________ Skidmore and Toya (2007)7, a natural disaster can be reduced as Email: [email protected] economically developed. Empirical evidence showed that 10803 Adv. Sci. Lett. Vol.23 No.11, 2017 Adv. Sci. Lett. 23,10803-10805, 2017 RESEARCH ARTICLE population that has higher income is experienced smaller comprising of Dabong, Machang district and Tanah Merah, damage. Meanwhile, Noy (2008)8 showed those countries that while the lower area consisting of the districts of Manek Urai have higher per capita income are better able to withstand the (new and old). In this case, a total of 400 questionnaire forms initial natural disaster shock and prevent further spillovers into were distributed and asked either in person to the head of the macro-economy. Furthermore, a country with a higher household and business premises owners in the disaster area. literacy rate, better institutions, a higher degree of openness to However, only 386 questionnaires have returned completely. trade and higher levels of government spending are also The selection of the three areas based on the suffered of severe capable to prevent and reduce the volume of damage. destruction of property compared to other areas such as Pasir On the other side, an increase in income will reduce the Puteh. In this case, the total destruction of the floods was used potential flood since the population is more prepared9. as independent variables and indicators to the flood disaster Meanwhile, as point out by the Lee and Jung (2014)10, low- which covers the level of destruction of houses, premises, plant, income population is affected because of they are unable to and equipment. While the level of education, the number of provide better location because of a high cost of land. In this households, income, a home with rivers, the insurance Cost and case, low- income population is more exposed to disaster since the Cost of Risk (CR) to reduce the risk of flooding as an their house is close to a river. In other words, a distance of the independent variable. the insurance Cost and the Cost of Risk house to the river has also played a vital role in determining (CR) to reduce the risk of flooding is used as dummy variables flood risk. in the model. In addition, educations also played a crucial factor in influencing the total damage11. As show by them, people with 3.2. Methods better education is more knowledgeable tend to be more aware, In order to identify the cause of the flood disaster in alert and prepared for any natural disaster event. Ahead, Kelantan a regression test, "Ordinary Least Square (OLS) was educated people more exposed with all the alarming situation applied. The model is used: coming and they were taught on how to prevent and overcome the problems such as natural disaster. Flood = f(TEDU, THH, INC, DHR, INS, CR) Apart from that, the population also is categories as (1) factors determine flood. As a study from Padli et al. (2013) While regression model 2 is the result of the transformation of expected the result of population and population density to have the functions of the model 1: a positive impact on a natural disaster12. The study also relates about a population with the urbanization. Overcrowding in any lnFloodi = β0 + β1lnTEDUi + β2lnTHHi+ β3lnINCi+ β4lnDHRi+ place will increase the pace of development in the area and thus β5INSi + β6CRi+ ɛi (2) cause congestion to that place because of lack space for carrying capacity. Where i…..n, ɛ, Flood, refer to the time, error term, the flood Meanwhile, Kundzewicz (2002) and Dawson et al. (2011), level in surveys with total destruction respectively, point out that insurance also plays a vital role to influence a TEDU = education level flood risk13 14. According to them, insurance can be used as a THH = total of household useful instrument to recover losses and damage despite it INC = total of income cannot be used as prevention tools. Future more, insurance are DHR = distance between homes with river capable of reducing a financial obstacle after the disaster INS = willingness to buy an insurance period15. As showed by the Zhai and Suzuki (2008)16 and CR = households' Cost of Risk (CR) for reducing the risk Veronesi et al. (2014)17, people are willing to pay in order to of flooding prevent, protect, and reduce the disaster risk including flooding. The independent variables of this study were selected However, Abbas et al. (2015) argue that CR for flood protection based on literature review, which found to be significant highly depends on the age of the head of a family, land determinants disaster. Variable income is expected to give two ownership and types of income18. ways sign relationship, where it will be either positive or In current research such by Cheol-Hee Son et.al, (2015) negative.