Malaysia Carbon Tax Nears Final Approval, Targets Heavy Industry First

Malaysia's Ministry of Finance announced that the country's national carbon tax is in its final stage of development. Deputy Finance Minister Liew Chin Tong confirmed the policy will initially target high-emission sectors like iron, steel, and energy, with small companies exempted. The tax is designed to price carbon emissions rather than raise revenue, and rates will be phased in to avoid excessive pressure on industry. The rollout aligns with Malaysia's net-zero by 2050 commitment and follows years of policy discussion. The phased approach aims to balance environmental goals with industrial competitiveness, particularly for emissions-intensive sectors that will feel the earliest impact. The announcement came in response to a parliamentary question about the status of the carbon tax under Budget 2026.