The government continues to work through the details of its planned carbon tax scheme, according to Natural Resources and Environmental Sustainability Minister Datuk Seri Arthur Joseph Kurup. Speaking at the Malaysia Palm Carbon Conference (MPC) 2026 in Kuala Lumpur on June 16, Arthur said the initiative would eventually go ahead once officials determine the right moment to launch it. The scheme takes into account how prepared different sectors are and the regulatory framework being developed.

Arthur stressed that the carbon tax is designed to encourage adoption of cleaner technology and lower emissions rather than function as a punishment mechanism. He explained that the government was examining how revenue from the tax would be allocated, with consideration being given to directing funds towards climate adaptation initiatives, forest preservation and sustainable management of land resources.

The minister indicated that careful deployment of collected revenue would help support Malaysia's climate objectives and strengthen its capacity to cope with climate change impacts. In April, Arthur had flagged that implementation could be pushed back from the original 2024 target to avoid adding strain on businesses and consumers. The initial proposal would have applied to sectors including steel, cement and construction, but the government wanted to account for energy supply challenges and global instability.

Separately, Arthur announced that the National Climate Change Bill is scheduled to be presented to the Dewan Rakyat during the current parliamentary term. He described the legislation as vital for reinforcing Malaysia's climate governance framework as the nation tackles the worldwide climate emergency. Felda chairman Datuk Seri Ahmad Shabery Cheek was also present at the conference.