Malaysia’s steel sector was relatively low-emitting compared to global averages. However, with increasing production, emissions are on the rise. As what Professor Ong said, the government is looking at the possibility of introducing carbon pricing for the iron and steel sector. The proposed carbon tax is seen as a mechanism to incentivise the industry to adopt more sustainable practices and reduce its carbon footprint.

The government’s consideration is also influenced by the implementation of the European Union’s Carbon Border Adjustment Mechanism (CBAM). This EU policy will impose a carbon tax on imports of certain products, including steel, from countries with less stringent climate regulations. To avoid additional costs, Malaysia is exploring options to introduce its own carbon pricing system.

Instead of viewing sustainability management as a mere expense or regulatory hurdle, businesses must shift their perspective. By integrating sustainability principles into core operations, companies can streamline processes, reduce costs, and capture new market opportunities. It’s time to transform sustainability from a compliance obligation to a competitive advantage.

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