KUALA LUMPUR: The Malaysian Green Technology and Climate Change Corporation (MGTC) has urged companies to adopt proactive carbon management measures despite the government’s decision to defer the implementation of a national carbon tax.
In supporting the deferment, MGTC said the move would help avoid additional cost pressures on businesses and consumers amid ongoing global economic uncertainties.
However, it stressed that carbon pricing and emissions regulations remain inevitable in the long term, calling on Malaysian companies to prepare early by introducing internal carbon pricing mechanisms.
"Assigning a notional price to greenhouse gas emissions allows organisations to better understand their carbon exposure, anticipate future costs and integrate climate considerations into business decisions," it said in a statement on Friday (April 24).
MGTC recommended that companies to establish internal carbon funds by setting aside an equivalent value based on their emissions, which can then be channelled into decarbonisation initiatives.
It added that such funds should be directed towards green investments eligible under the government’s Green Investment Tax Allowance (GITA), enabling companies to reduce emissions, improve operational efficiency and optimise financial returns through existing incentives.
To facilitate immediate action, MGTC highlighted the availability of its online tool, which enables organisations to calculate Scope 1 and Scope 2 greenhouse gas emissions and estimate an internal carbon price.
The tool, accessible via its LCOS Basic platform, is aimed at lowering entry barriers, particularly for small and medium enterprises.
For more advanced carbon management, MGTC offers a subscription-based Low Carbon Operating System (LCOS), which provides end-to-end greenhouse gas accounting across all scopes, multi-site reporting, structured data management aligned with international standards and analytics for decarbonisation strategies.
"This tiered approach allows companies to start simple and scale up as their carbon management capabilities mature," it said.
MGTC, the implementing agency for green growth and climate action under the Natural Resources and Environmental Sustainability Ministry, said it is committed to supporting businesses through advisory services, capacity-building programmes, tools, incentives and certification initiatives.
Its acting group chief executive officer Saiful Adib Abd Munaff said the deferment of the carbon tax should be viewed as an opportunity rather than a delay.
"Those who move early will be better positioned to remain competitive, manage risks and capture emerging opportunities in the low-carbon economy," he said.
MGTC reiterated that early adoption of carbon management practices would strengthen business resilience and ensure a smoother transition when future carbon pricing mechanisms are introduced.
