Malaysia is in the final stages of developing a national carbon tax policy, with initial implementation focused on the iron, steel, and energy sectors. Deputy Finance Minister Liew Chin Tong stated the goal is to establish carbon pricing so emissions carry a cost, not to raise revenue. The rollout aligns with Malaysia's target of net-zero emissions by 2050. The carbon tax rate will be phased in to avoid overburdening industry. The announcement came during a parliamentary Q&A session ahead of Budget 2026. No specific timeline or rate has been released yet, but the policy is expected to set a benchmark for carbon pricing in Southeast Asia.
