Prime Minister Datuk Seri Anwar Ibrahim has reassured investors that Malaysia’s forthcoming carbon tax will not serve as a deterrent to investment activities, emphasising that its implementation will be both cautious and phased.
Speaking during a roundtable session with key industry leaders in Paris on Friday, Anwar acknowledged the growing momentum towards decarbonisation globally. However, he stressed that Malaysia would approach the carbon tax pragmatically to ensure it does not undermine investor confidence.
“We have to be very realistic. The proposed carbon tax should not be seen as too problematic at the expense of investing companies,” he stated.
The session was attended by several Cabinet members, including Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, and Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
Anwar, currently in Paris for a two-day official visit, noted that the carbon tax is expected to be finalised within the coming months. Its initial rollout will focus on the sectors with the highest emissions, particularly the iron, steel and energy industries. The tax is scheduled to be introduced in 2026 as part of Malaysia’s broader commitment to promoting low-carbon technologies and achieving national emission reduction targets.
He also highlighted that environmental sustainability remains a priority, citing the government’s move to halt new palm oil plantations on peat soil due to high carbon emissions, despite the industry’s economic significance.
Industry leaders present at the roundtable commended the Malaysian government for maintaining a robust and investor-friendly climate.
On tourism, Anwar shared positive developments, noting a sharp rise in tourist arrivals from France. He credited the increase in part to the newly launched direct flight route between Kuala Lumpur and Paris operated by Malaysia Airlines.
“You can swim the whole year due to our favourable climate,” he added with a touch of levity.
He further encouraged French companies to explore opportunities in Malaysia and the ASEAN region, describing both as among the most dynamic and rapidly expanding economic blocs globally.
-Bernama
