KUALA LUMPUR: Malaysia has deferred the implementation of its carbon tax this year following geopolitical tensions and volatile energy prices, says Datuk Seri Arthur Joseph Kurup.
The Natural Resources and Environmental Sustainability Minister said the tax, which had been announced under Budget 2026, was initially intended to apply to selected industries including energy, steel and cement.
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"But... that was before all the geopolitical developments we saw in the first quarter of this year.
"So when the geopolitical tensions arose, especially in West Asia, we made the decision to defer the carbon tax," he told the Concorde Club here on Monday (Oct 5).
The session, chaired by Bernama chairman Datuk Seri Wong Chun Wai, discussed the topic "Haze, Heat & Hope".
Arthur said the government also wanted to give affected industries some breathing room amid more volatile energy prices.
He said the deferment would also allow the government to put the necessary policy, regulatory and enforcement framework in place before introducing the tax.
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"We need to have the proper framework and all that in place first," he said.
Arthur said the government had successfully launched the National Carbon Market Policy and hoped the Climate Change Act could be tabled soon.
He said once the framework was in place, the government would be able to establish regulatory powers, including setting an emissions ceiling.
"And then we can know anything above the ceiling, then the carbon tax will come into place as a penalty to the polluters," he said.
Arthur said the carbon tax would therefore not be implemented this year.
The Concorde Club is an informal gathering of senior editors and journalists from local and foreign media organisations to discuss current affairs and national issues with politicians and policymakers.
