PETALING JAYA: Malaysia is expected to enter a more active phase once its carbon tax framework is formalised under the upcoming Climate Change Bill.
In a regional comparison, RHB Research noted that Malaysia remains at a “nascent stage of carbon price discovery”, while Singapore has already emerged as the region’s leading trading hub, generating about US$500mil in annual carbon market value, while Indonesia is positioning itself as the largest supplier through forestry-based credits.
“This year, the government is taking foundational steps to introduce a carbon tax that initially targets the steel, iron and energy sectors.
“This should boost liquidity on the Bursa Carbon Exchange, supported by the Malaysia Forest Fund (MFF), which provides nature-based credits to help firms offset emissions,” RHB Research pointed out.
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