Malaysia's Deputy Finance Minister Liew Chin Tong announced that the national carbon tax policy is in its final phase, with initial implementation targeting the iron, steel, and energy sectors. The policy aligns with Malaysia's goal of net-zero carbon emissions by 2050 and is designed to put a cost on carbon emissions rather than generate revenue. The carbon tax will establish a pricing mechanism to encourage emission reductions in high-impact industries. Specific tax rates and implementation timelines are expected in Budget 2026. This move places Malaysia among Southeast Asian countries adopting carbon pricing to meet climate commitments.
