Carbon tax aligns with climate policy and carbon market, says Amir Hamzah


KUALA LUMPUR: The carbon tax set for 2026 will be streamlined with climate policy and the national carbon market, says Finance Minister II Datuk Seri Amir Hamzah Azizah.

“The implementation framework will align with climate change and carbon market policies,” he said during his 13th Malaysia Plan winding up on Monday (Aug 18).

“It will also account for fossil fuel subsidy rationalisation, which has begun,” he added.

Amir Hamzah said the government plans to introduce the carbon tax next year as part of its net‑zero 2050 commitment.

He added the tax will target high‑emission industries such as iron, steel and energy.

“The carbon tax supports industrial decarbonisation and protects exports from the EU Carbon Border Adjustment Mechanism,” he said.

Amir Hamzah then said that the ministry is reviewing practices in Norway, the UK, Canada, South Korea, Japan, Singapore and Indonesia on carbon taxes and emissions trading schemes.

He said over 36 countries already implement carbon taxes, and Malaysia announced plans during Budget 2025.

Amir Hamzah then said that tourism will be supported under 13MP through a Special Tourism Investment Zone in key areas.

“Investors can optimise existing incentives to ensure efficiency and returns,” he said.

Anwar said support includes STIZ, heritage conservation in the capital, and homestay empowerment during 13MP.

He said foreign tourist spending reached RM102.2bil last year.

 

 

 

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