Carbon Tax Update - Malaysia
It has been recently announced that the Malaysian Government will review the implementation of the proposed carbon tax in the country due to the current Middle East conflict. Carbon tax is meant to be introduced sometime this year on the iron, steel and energy sectors through the enactment of the Climate Change Act.
With the latest announcement, it is unclear whether the passing of the Climate Change Bill will be deferred. There is also the possibility the Act will be enacted as planned, with only the sections governing carbon tax taking effect at a much later date instead.
Nevertheless, the Government appears to remain committed in their efforts to reduce Malaysia’s carbon footprint as a nation with the launch of the National Carbon Market Policy on 21 April 2026.
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