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

KUALA LUMPUR: Malaysia has yet to decide whether to implement a compulsory carbon tax for the aviation sector, though it remains committed to net-zero carbon emissions by 2050, said Transport Minister Anthony Loke.

He said Malaysia would adopt a phased approach to reduce aviation emissions, with details to be announced progressively.

"In terms of 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.

"Implementation will take place in stages, and more detailed plans will be announced from time to time. But at this point, we have yet to make any decision. CAAM (Civil Aviation Authority of Malaysia) has not made any decision regarding compulsory carbon taxation," he told a press conference at the 61st Directors General of Civil Aviation Conference for the Asia-Pacific Region (DGCA/61) today.

Loke said reducing emissions was part of Malaysia's national and international obligations under the International Civil Aviation Organisation (ICAO), with all member states working toward the 2050 net-zero target.

The conference, hosted by Malaysia for the first time, brings together regional civil aviation leaders to discuss safety, emerging technologies, and sustainability.

Loke said the event's theme, "Smart Skies: Emerging Technologies for Safe, Secure, Sustainable, and Efficient Aviation", was timely given growing aviation demand and rapid technological advances.

"Technology is already transforming aircraft operations, airspace management, and hazard identification. Artificial intelligence, unmanned aircraft systems, and advanced air mobility will open further opportunities for connectivity, logistics, and public services," he said.

He added that innovation must be supported by clear policies, credible regulations, and strong public confidence to ensure technological progress enhances safety and efficiency rather than creating new risks.

Earlier in his opening address, Loke described aviation as a strategic pillar of national development for Malaysia as an open, trading nation.

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

He said Malaysia had outlined a pathway toward net-zero carbon emissions for international aviation by 2050 through the Malaysia Aviation Decarbonisation Blueprint, aligned with ICAO's Long-Term Aspirational Goal.