Government Mulls MYR15 Per Tonne Carbon Tax

Sources indicate the government is considering introducing a carbon tax at an initial rate of MYR15 per tonne, following Prime Minister Anwar Ibrahim’s earlier announcement in Budget 2025 that iron, steel, and energy companies will be subject to the levy starting 2026.

Carbon Tax

The move aligns with Malaysia’s broader sustainability agenda. Officials also noted that data centres currently consume less than half of declared electricity demand, raising concerns over stranded assets and potential cost transfers to other users. Meanwhile, Bank Negara Malaysia (BNM) is expected to maintain the OPR at 2.75%, supported by benign inflation and stronger-than-expected 3Q2025 growth.

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