Sharon Yong, Malaysia sustainability tax leader and partner for Ernst & Young Tax Consultants Sdn Bhd,
AS Malaysia prepares for Budget 2026 amidst an evolving landscape of carbon pricing and carbon markets, like other countries, there is a need for a policy rollout both from a sustainability perspective (in meeting our Sustainable Development Goals) as well as economic reasons, for example, in anticipation of the European Union (EU) carbon border adjustment mechanism (CBAM) entering its definitive phase in January 2026.
Malaysia is set to introduce a carbon tax in 2026.
