Malaysia faces significant GDP risks from extreme heat and flooding, potentially losing up to 16% of economic output by 2050. To counter this, the country is pivoting toward a low-carbon economy, leveraging its position as a top solar PV exporter to create higher-quality jobs. Key to this transition is a planned carbon tax in 2026 and an estimated investment need of up to 1.5 trillion USD by 2050. These funds will target renewable energy, climate-smart agriculture, and urban resilience to protect productivity and maintain global competitiveness.
