Malaysia yet to decide on compulsory aviation carbon tax, says Loke

LocalEnvironment
7 Sep 2026 • 1:36 PM MYT
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Image from: Malaysia yet to decide on compulsory aviation carbon tax, says Loke
Transport Minister Anthony Loke - Photo by Bernama

KUALA LUMPUR - Malaysia has yet to decide whether to impose a compulsory carbon tax on the aviation sector, although it remains committed to achieving net-zero carbon emissions for international aviation by 2050.

Transport Minister Anthony Loke said Malaysia would adopt a phased approach towards reducing aviation emissions, with details on implementation to be announced progressively.

“But in terms of our strategy and implementation, it differs from country to country. As far as Malaysia is concerned, we have yet to determine whether to implement a carbon tax.

“Of course, implementation will take place in stages and a more detailed implementation will be announced from time to time. But at this point, we have yet to make any decision.

“The Civil Aviation Authority of Malaysia has not made any decision regarding compulsory carbon taxation,” he said on the sidelines of the 61st Conference of Directors-General of Civil Aviation for the Asia and Pacific Region held at a hotel, here, today.

Loke said reducing aviation emissions was both a national and international obligation for Malaysia under the International Civil Aviation Organisation (ICAO), with all member states required to work towards the 2050 net-zero target.

He said Malaysia had established a pathway towards net-zero carbon emissions for international aviation through the Malaysia Aviation Decarbonisation Blueprint, which is aligned with ICAO's Long-Term Aspirational Goal.

The conference, hosted by Malaysia for the first time, brings together civil aviation leaders from across the Asia-Pacific region to discuss issues including aviation safety, emerging technologies and sustainability.

Loke said the conference, themed “Smart Skies: Emerging Technologies for Safe, Secure, Sustainable, and Efficient Aviation”, was particularly significant as demand for air travel continued to grow alongside rapid technological development.

“Technology is already transforming the way aircraft are operated, airspace is managed and aviation risks are identified. Artificial intelligence, unmanned aircraft systems and advanced air mobility will create further possibilities for connectivity, logistics and public services,” he said.

However, Loke said technological innovation must be accompanied by clear policies, credible regulations and strong public confidence to ensure advancements improve aviation safety and efficiency without creating new risks.

In his opening remarks earlier, Loke said aviation remained a strategic pillar of Malaysia's national development as an open and trading nation.

“Malaysia aims to strengthen its position as a resilient and competitive regional aviation hub through modern infrastructure, more efficient airspace, strong regulatory institutions and a highly skilled workforce,” he said.

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