
Ease carbon tax impact on SMEs
Without a domestic carbon tax, exporters of carbon-intensive goods still risk paying levies under the European Union's carbon border adjustment mechanism (CBAM), which takes effect next year.
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New Straits Times
an hour ago
- New Straits Times
Malaysia to roll out carbon tax in 2026, aligned with climate policies, market goals
KUALA LUMPUR: Malaysia's carbon tax, set to be rolled out next year, will be aligned with national climate change policies and the domestic carbon market, said Finance Minister II Datuk Seri Amir Hamzah Azizan. Speaking in the Dewan Rakyat, he said it would also take into account the ongoing fuel subsidy rationalisation. "The framework for the implementation of the carbon tax will be aligned with national climate change policies and the domestic carbon market, while also taking into account measures such as the fuel subsidy rationalisation, which has already begun," he said in his winding-up speech for the 13th Malaysia Plan. He said the carbon tax would not only support industrial decarbonisation efforts but was also crucial in safeguarding the nation's exports from the impact of the European Union's Carbon Border Adjustment Mechanism (CBAM). He added that the ministry is also studying international best practices, including those from Norway, the United Kingdom, Canada, South Korea, Japan, as well as Singapore and Indonesia. These countries, he said, have implemented or are in the process of implementing carbon taxes and Emission Trading Schemes (ETS). The government plans to introduce the carbon tax next year as part of its commitment to achieving net-zero carbon emissions by 2050. In its initial phase, the tax will focus on the iron, steel, and energy sectors, which are the main contributors to greenhouse gas emissions.


The Sun
3 hours ago
- The Sun
EU imports €4.4 billion of russian LNG in first half of 2025
BRUSSELS: The European Union imported liquefied natural gas (LNG) from Russia worth around €4.48 billion (US$5.2 billion) in the first half of 2025, up from €3.47 billion over the same period last year, according to EU statistics agency Eurostat on Monday. Overall, the EU imported LNG valued at approximately €26.9 billion during the first six months of 2025. The largest share - around €13.7 billion - came from the United States, reported German news agency dpa. For all of 2024, the US accounted for nearly 45 per cent of the EU's total LNG imports, making it the bloc's largest LNG supplier, the European Commission reported. Unlike Russian oil and coal, the EU has so far not imposed sanctions on gas due to ongoing dependencies among some member states. LNG and pipeline supplies, including via TurkStream, continue to flow into the bloc -BERNAMA-dpa


The Sun
3 hours ago
- The Sun
Malaysia finalises FTA with South Korea, signing set for October
SINGAPORE: Malaysia has completed negotiations for a free trade agreement with South Korea, with the signing expected in October. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz announced the development during a fireside chat at Bursa Malaysia's Invest Malaysia event. He stated that the agreement underscores Malaysia's commitment to expanding market access amid geopolitical challenges. 'To date, we have concluded 18 FTAs, both bilateral and multilateral. We've signed two this year and resumed talks with the European Union,' he said. The session was moderated by Bursa Malaysia CEO Datuk Fad'l Mohamed as part of the Macquarie ASEAN Conference. When asked about Malaysia's engagement with BRICS amid US pressure, Tengku Zafrul stressed the importance of a balanced foreign policy. 'We are partners today. There are many other countries who are already members, and what's important is that all these countries are also members of other economic blocs,' he said. He reiterated Malaysia's neutral stance in global trade dynamics. 'Malaysia can't afford to (take sides). I think ASEAN is also playing that card well where we engage all parties,' he added. In his keynote address, Tengku Zafrul noted that ASEAN's economic opportunities remain strong despite global uncertainties. He highlighted the region's resilience, driven by trade openness and structural reforms. The minister also addressed challenges, including proposed US tariffs on semiconductor imports. Malaysia exported RM119.86 billion worth of electrical and electronics goods to the US in 2024, with semiconductors making up half of that value. 'All these risks and numbers reflect why we are actively engaging with Washington to ensure sectoral carve-outs are clear and fair,' he said. To mitigate transshipment risks, Malaysia is enhancing supply chain verification and local value addition. 'In parallel, we are also putting together a detailed supply chain mapping, diversifying markets, strengthening enforcement, and boosting local value-add in production,' he added. - Bernama