The federal government will pioneer the issuance of biodiversity sukuk of up to RM1 billion involving the replanting of degraded forests to generate carbon credits.

Prime Minister Datuk Seri Anwar Ibrahim said interested state governments would undertake these replanting initiatives.

“The government has prepared various tax deductions for preservation and conservation (activities),” he said when tabling the Budget 2024 in the Dewan Rakyat today.

The prime minister said tax deductions would be given to entities that sponsor tree replanting or environmental preservation and conservation projects certified by the Forest Research Institute Malaysia to encourage more private sector participation.

He added that the application period for income tax exemption period for social enterprise will be extended until 2025.

Anwar said this measure will support the social enterprise moving to generate positive environmental and social impact in line with Malaysia Madani’s sustainability pillar.

Source: BERNAMA News Agency