KUALA LUMPUR: The government is reviewing the implementation of Malaysia's carbon tax in light of the current geopolitical situation, including the war in West Asia, which is exerting cost pressures on industries, the Ministry of Natural Resources and Environmental Sustainability said.
Its Minister, Datuk Seri Arthur Joseph Kurup, said that although the government had planned to implement the carbon tax this year, it understands that industries are now very sensitive to any cost implications, including rising costs of energy, petrol and diesel.
"(Thus), due to the current geopolitical situation, we may need to review when and how much to implement the carbon tax," he told the media on the sidelines of the International Sustainability Week (ISW) pre-launch event, here Tuesday.
Arthur added that although there may be changes to the implementation of the carbon tax, the National Climate Change Bill, under which the carbon tax is an initiative, is still on track to be introduced this year.
"I believe that the framework must still be established because we have to move towards 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 noted.
He added that initiatives such as collaborations, the introduction of industry-leading technologies, and the use of government incentives remain necessary.
He also noted that the government is encouraging the construction industry (and other industries) to adopt greener practices through a range of initiatives and programmes aimed at supporting the transition towards sustainability.
Among the initiatives implemented is the Global Carbon Cities Challenge by the Malaysian Green Technology and Climate Change Corporation (MGTC), which engages industries and local authorities in efforts to reduce carbon emissions and promote green practices.
He said programmes such as ISW are also being used to empower industries by introducing relevant technologies and encouraging the utilisation of government incentives.
"The government has allocated a total of RM419 billion under Budget 2026 for various initiatives and we hope that industries will utilise 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 in order to mandate rules and regulations, set the bar and standards, and ensure compliance,” he added. - Bernama
