Malaysia Energy Carbon Capture Utilization and Storage Regulation

In March 2025, Malaysia took a significant step towards regulating carbon management by passing the Carbon Capture, Utilization, and Storage (CCUS) Bill 2025. This legislation has been anticipated by energy companies, including U.S. firms, as it provides clarity for potential investments in new projects. This positive stance may translate into favorable conditions for U.S. project developers and technology providers.

The CCUS Bill aligns with Malaysia’s National Energy Transition Roadmap (NETR), introduced in 2023, which outlined plans for developing CCUS infrastructure, such as storage sites and pipelines, and establishing a robust carbon market. The CCUS Bill represents the Malaysian government’s first major effort to establish comprehensive federal regulations for CCUS activities. This infrastructure buildout to support CCUS potentially creates a new industry for U.S. technologies and expertise.

The Malaysian Minister of Economy emphasized the CCUS Bill’s importance in positioning Malaysia as the region’s low-carbon leader. This could provide U.S. exporters with a strategic entry point into the broader Southeast Asian market. Japan, South Korea, and Singapore have already expressed interest in exporting liquefied carbon from their hard-to-abate sectors to Malaysia to be sequestered in offshore oil and gas fields nearing their end of life.

The Malaysian government believes that with the right regulatory framework in place, CCUS could be a new economic engine of growth for the country, generating over 200,000 jobs and adding $250 billion in gross value to the economy over the next 30 years. This growth will drive demand for workforce training, certification programs, and specialized technical expertise—areas where U.S. firms have a competitive edge.

For U.S. companies, this emerging sector presents significant opportunities. Companies specializing in CCUS technology and carbon management infrastructure could find substantial business prospects as Malaysia advances its CCUS ambitions.  If you represent a U.S. company with the relevant capabilities and want to learn more, please contact Commercial Specialist Mohan Gurusamy at office.kualalumpur@trade.gov.