KUALA LUMPUR – The deferment of Malaysia’s carbon tax implementation will give the Natural Resources and Environmental Sustainability Ministry (NRES) more time to finalise the regulatory and policy framework needed before emission caps are enforced.
Minister Datuk Seri Arthur Joseph Kurup said the decision to postpone the tax, which was initially scheduled to be introduced this year, was also influenced by global geopolitical developments that had contributed to energy price volatility.
Speaking during a Concorde Club dialogue session at Wisma Bernama here today, he said the delay would provide industries with additional time to adjust while the government strengthens the legal framework governing carbon emissions.
He said this included the National Carbon Market Policy and the proposed Climate Change Act, which he hoped could be tabled soon.
“(The postponement) is also right because we need to have the proper framework and all that in place first. That’s why we’ve been successful in launching the National Carbon Market Policy and I hope that we can table the Climate Change Act soon.
“Once that is up, then we have the framework and the policies all clearly in place, including the regulation, enforcement, the regulatory powers to give us to set the emission ceiling, and then we can know anything above the ceiling, then the carbon tax will come into place as a penalty to the polluters.
“So, we’re not looking at this year for the carbon tax,” he said.
On exemptions under the Clean Air Regulations, Arthur said industrial plants would only be considered for extensions if their operators could demonstrate concrete efforts to adopt the necessary technologies.
He said the ministry would not issue further blanket exemptions, adding that operators whose existing exemptions expire by January next year would need to demonstrate progress towards compliance.
He said 2030 remained the final deadline for all industries to achieve full compliance.
“We had the Clean Air Regulations, which came into force in 2014, where plants, factories are not allowed to pollute above the 600 milligram per cubic meter…that was the regulation set…however, they’ve been enjoying exemptions up to this year.
“So when I came in as the Minister, I decided that I will not be issuing any more exemptions because the technology is available, the technology is accessible and if we are to meet our target of net zero emissions by 2050, we need to have all this in place and we definitely need the cooperation from the industries as well,” he said.
Arthur said operators would still be given sufficient time to conduct feasibility studies and carry out necessary modifications, but they would have to demonstrate meaningful progress to qualify for any temporary extension.
The session, titled “Building A Resilient Malaysia: Environment, Climate And Our Future”, was moderated by Malaysian National News Agency (Bernama) chairman Datuk Seri Wong Chun Wai.
Also present were Bernama chief executive officer Datin Paduka Nur-ul Afida Kamaludin and members of the local and foreign media based in Malaysia. – October 5, 2026