Kuala lumpur: The private sector needs to continue partnering with the government to co-create solutions, scale innovation, and build a competitive, green economy for Malaysia, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He emphasized that sustainability and inclusivity must go hand in hand and require a collaborative approach involving various sectors.

According to BERNAMA News Agency, Amir Hamzah highlighted that the Ministry of Finance is drafting legislation for implementing a carbon tax, specifically targeting the iron, steel, and energy sectors. This initiative is designed with industry readiness and alignment to global best practices in mind, as the government coordinates with international standards and engages industry players to determine the best way forward.

The proposed carbon tax aims to incentivize industry players to adopt sustainable solutions, enabling solution providers to expand and manage their costs more effectively in the long run. Amir Hamzah noted that this will allow more companies to access greener solutions, although there will be challenges in the short term as businesses need to invest in new technologies or revise processes to meet stricter standards.

Amir Hamzah reiterated that the journey towards a sustainable future must be collaborative, inclusive, and equitable. He referenced Malaysia’s roadmap to achieve net zero emissions by 2050, mentioning that several ministries are actively working on key enablers such as a climate change bill, a carbon pricing mechanism, and a framework to support a circular economy.

These policies are part of a broader national effort, embedded in the 13th Malaysia Plan and the MADANI Economy framework. The government’s actions include investing in public transport, conserving natural resources, and strengthening the green economy, while also prioritizing equitable growth, affordable housing, and conducive working environments.