Paris: As the Malaysian government moves forward with the finalization of a proposed carbon tax, Prime Minister Datuk Seri Anwar Ibrahim has assured that its implementation will not pose a problem for investors. Speaking at a Roundtable Meeting with Captains of Industry in Paris, Anwar emphasized that while the trend towards decarbonisation is significant, the proposed tax should not be viewed as a hindrance to investing companies.

According to BERNAMA News Agency, Prime Minister Anwar highlighted the need for a realistic approach to the carbon tax, ensuring it does not become overly burdensome for industries. He was accompanied by notable members of his cabinet, 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, on a two-day official visit to France, stated that the implementation of the carbon tax must be cautious and gradual. He mentioned that the government is in the final stages of planning and intends to target sectors with the highest carbon emissions first. Though the palm oil industry remains crucial for Malaysia, the Prime Minister noted that new plantations on peat soil have been halted due to their high carbon emissions.

The Malaysian government aims to introduce the carbon tax in 2026, focusing on the iron, steel, and energy industries.