Amir Hamzah: RON95 subsidy cut to come first, carbon tax expected in 2026
Amir Hamzah says the government will prioritise the rationalisation of RON95 petrol subsidy this year before introducing a carbon tax in 2026. – Bernama photo
KUALA LUMPUR (June 17): The government will prioritise the rationalisation of RON95 petrol subsidy this year before introducing a carbon tax in 2026, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said Malaysia must first address the issue of fuel subsidies, particularly those involving the energy sector, before implementing the carbon tax. The government had previously announced plans to roll out a carbon tax targeting the iron, steel, and energy industries by 2026, as outlined in Budget 2025.
'As we embark on this transition, we must ensure that no unintended consequences are embedded within our system. For instance, Malaysia has yet to implement a carbon tax as part of its policy framework. While it is scheduled for rollout by 2026, there are important precursor steps we must take,' he added.
'One major issue is the existing distortions in the system, especially the subsidies provided to the energy sector. A key objective now is to begin scaling back these subsidies. It doesn't make sense to impose taxes on one side while simultaneously providing subsidies for petrol, diesel, and other fuels,' he continued.
Amir Hamzah made these remarks during a session titled 'Delivering Malaysia's Energy Transition', where he was a panellist alongside Deputy Minister of the Ministry of Energy Transition and Water Transformation (PETRA), Akmal Nasrullah Mohd Nasir.
The session was chaired by Tan Sri Abdul Wahid Omar, a senior independent and non-executive director of IOI Corporation Bhd.
He also emphasised that subsidy rationalisation is a critical step toward establishing a strong foundation for building sustainable mechanisms and policy frameworks.
'As a result, we can expect the introduction of structured measures, including climate action frameworks, robust measurement tools, and ultimately, the implementation of a carbon tax to support these initiatives.
'If we want this transition to be sustainable and impactful, the entire system must respond. It cannot be driven by isolated announcements or standalone policies. The challenge for the government is to tie everything together coherently and effectively,' Amir Hamzah added.
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim said the adjustments involving the price of RON95 petrol would not affect 85 to 90 per cent of the population.
Anwar said the government's move towards subsidy rationalisation is a critical step to ensure national resources are channelled effectively to benefit the lower-income group. Amir Hamzah economy Energy Asia RON95 subsidy rationalisation
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
an hour ago
- Barnama
Ties Within BRICS Strengthening, Mutual Trade Growing
ST. PETERSBURG, June 20 (Bernama-RIA Novosti) -- Russian President Vladimir Putin said on Friday that ties within BRICS are strengthening and mutual trade is growing, with the trade turnover of the participating countries already exceeding US$1 trillion. "Special attention is being paid to strengthening ties within BRICS. The mutual trade turnover between our countries has already exceeded US$1 trillion and continues to grow. All of these are elements of a global growth platform. 'And they are based on the key principles of BRICS. And this is consensus, parity, and consideration of interests towards each other," Putin said at a plenary session of the 2025 St. Petersburg International Economic Forum (SPIEF), Sputnik/RIA Novosti reported.
Barnama
an hour ago
- Barnama
Geneva Meeting Begins In Bid To Halt Escalating Israel-Iran Conflict
GENEVA, June 20 (Bernama-Anadolu) -- A crucial international meeting aimed at halting the hostilities between Israel and Iran began Friday in Geneva, marking the start of an intensive two-week diplomatic effort to prevent a wider conflict in the Middle East. British Foreign Secretary David Lammy, French Foreign Minister Jean-Noel Barrot, and German Foreign Minister Johann Wadephul are holding talks with Iranian Foreign Minister Abbas Araghchi to address Tehran's nuclear activities and identify potential diplomatic off-ramps to avoid escalation. EU foreign policy chief Kaja Kallas is also attending the meeting, according to Anadolu Ajansi.
Borneo Post
2 hours ago
- Borneo Post
Bernama chairman Wong Chun Wai named National Journalism Laureate
Wong shows off his winnings. – Bernama photo KUALA LUMPUR (June 20): Malaysian National News Agency (Bernama) Chairman Datuk Seri Wong Chun Wai was named the National Journalism Laureate at the Malaysian Press Institute (MPI)-Petronas Journalism Awards ceremony held here tonight. Wong, 64, brings over four decades of journalistic experience, having begun his career as a junior reporter at The Star in Penang in 1984. He then climbed the ladder to serve in various positions at its headquarters in Petaling Jaya. Wong is the 14th recipient of the prestigious award, joining the ranks of past luminaries, including the first recipient, the late Tan Sri Abdul Samad Ismail of Utusan Melayu (1988), the late Tan Sri Lee Siew Yee of the New Straits Times (1992), and Datuk Ishak Muhammad or Pak Sako (1995). Other notable past recipients include Tan Sri Johan Jaaffar, Datuk Kadir Jasin, Adibah Amin, the late Datuk Ahmad Rejal Arbee, the late Tan Sri Zainuddin Maidin and Datuk CC Liew. Wong said he felt 'small and humbled' to be among these luminaries. The award was presented by Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir. Apart from journalism, Wong has also held corporate leadership roles, serving as group chief editor, managing director, and chief executive officer of Star Media Group (SMG). In 2023, he was appointed Bernama Chairman. He had earlier served as a member of its Board of Governors (2004–2010) and as a member of its Supervisory Council (2010–2014). He continues to write analysis pieces for Bernama. Wong remains a columnist for The Sunday Star, where his popular 'On The Beat' column has run since 1997, despite no longer being with SMG. Over the years, Wong has delivered numerous exclusives, including interviews with the late physicist Stephen Hawking and former US President Bill Clinton. In 2003, he won the MPI Best Feature Award for his investigative piece on Malaysians undergoing terrorist training in Afghanistan. He was also the first Malaysian elected into the Paris-based World Editors Forum and served as Chairman of the Asia News Network with over 21 media affiliates. 'This is an honour for me and certainly the pinnacle of my journalism journey,' he said. He advised journalists to go beyond standard news writing by dabbling in news analysis and commentaries. Wong is also the author of 'Penang's History, My Story', published in 2014 by The Star, and translated into Bahasa Malaysia by Universiti Sains Malaysia. He has served as an adjunct professor at Universiti Kebangsaan Malaysia, his alma mater. 'My advice to fellow journalists is never to stop writing. 'I wish to commend my fellow veterans like Tan Sri Johan Jaaffar, Datuk Seri Azman Ujang, Datuk Yong Soo Heong, Datuk Kadir Jasin and Datuk Kuik Cheng Kang who still write, whether regularly or occasionally,' he said. 'Old journalists should never fade away, but continue writing,' he added. The veteran journalist has also embraced digital platforms such as Instagram, X (formerly Twitter) and YouTube to share his views. Wong said he strongly advocates for the engagement of professionally trained journalists, emphasising that 'we have undergone years of training, and are better equipped to understand legal boundaries and the sensitivities of Malaysia's multi-racial society.' 'More importantly, the established media is accurate and we take responsibility for what we publish,' he said. Wong dedicated the award to all journalists, particularly veterans and seniors, for their tireless service to the profession. – Bernama
