KUALA LUMPUR, Aug. 5 (Xinhua) -- Malaysia is gearing up efforts to prepare its iron and steel industry for the European Union's Carbon Border Adjustment Mechanism (CBAM), which took effect on Jan. 1, 2026, as compliance costs are estimated to reach 970.7 million ringgit (about 237.28 million U.S. dollars) in 2026.
The Malaysia Steel Institute estimates the CBAM-related costs are expected to rise in subsequent years as the European Union (EU) imposes carbon charges on embedded emissions in imports, the Ministry of Investment, Trade and Industry said in a statement on Tuesday.
The iron and steel sector, a key export contributor of the Southeast Asian country, shipped about 6 million tonnes of products worth 24 billion ringgit in 2025. Exports to the EU accounted for 752,000 tonnes valued at 3.23 billion ringgit.
The government said discussions with the EU will continue to ensure fair treatment for developing economies while maintaining Malaysian exporters' competitiveness. ■
