KUALA LUMPUR, April 14 — The government is reviewing Malaysia’s carbon tax moves in light of geopolitical issues, including the war in West Asia that is pressuring industries, Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup said.
He added that although the government had planned to implement the carbon tax this year, it understands that industries are sensitive to rising energy costs.
“Due to the current geopolitical situation, we may need to review when and to what extent to implement the carbon tax,” he told reporters on the sidelines of the International Sustainability Week (ISW) pre-launch here today.
Arthur added that although there may be changes to the carbon tax initiative under the National Climate Change Bill, which will be tabled this year.
“I believe the framework must still be established because we have to move in that direction anyway, and the geopolitical situation now is not an excuse for us to slow down. In any case, if we look at fossil fuels such as petrol and diesel, these are ultimately finite resources.
“We still need to move towards renewable energy and have a more green environment,” he said.
He added that initiatives such as collaborations, industry-leading technologies, and government incentives remain necessary.
Arthur also noted that the government is encouraging the construction industry (and other industries) to adopt greener practices under a range of initiatives aimed at supporting the transition towards sustainability.
Among these programmes implemented is the Global Carbon Cities Challenge by the Malaysian Green Technology and Climate Change Corporation (MGTC), which engages with industries and local authorities to reduce carbon emissions and promote green practices.
He said events such as ISW are also empowering industries by introducing relevant technologies and encouraging the use of government incentives.
“The government has allocated RM419 billion under Budget 2026 for various initiatives and we hope industries will make use of these, including the tax incentives, as there is still room and we are not coming down very hard.
“There are no strict penalties at present, but we will have to move in that direction as we progress to mandate rules and regulations, set the bar and standards, and ensure compliance,” Arthur added.
