Kuala lumpur: Prime Minister Datuk Seri Anwar Ibrahim has stated that Malaysia must acknowledge the reality that the nation can no longer heavily rely on dividends from Petroliam Nasional Bhd (Petronas), as the national oil company operates as a commercial entity closely tied to global oil prices.
According to BERNAMA News Agency, Anwar explained that Petronas' dividend payments to the government are influenced by market conditions and the oil and gas industry's performance, which remains subject to volatility amid an uncertain global landscape. During a one-hour briefing with local and international media editors-in-chief, he emphasized, "Petronas is a commercial entity. The dividend depends on the performance and the price of petroleum. We have to accept reality."
The Prime Minister's comments were in response to questions regarding the government's concerns about the state-owned oil company's declining dividend payouts and whether this trend might persist. Anwar indicated that while the government naturally seeks higher dividends to support national development, such expectations must be balanced against prevailing global conditions in the oil and gas sector.
"As much as we want more dividends, we also have to look at what is happening globally and within the oil and gas industry," he remarked. Anwar further stressed that Malaysia must focus on creating new business entities and economic drivers capable of generating sustainable revenue for the government in the future.
Petronas, the country's sole Fortune 500 company, is the single-largest contributor to government coffers. The Finance Ministry, in its Fiscal Outlook and Federal Government Revenue Estimates 2026 report, projected a RM20 billion dividend from Petronas for the next year, in contrast to the RM32 billion the company has committed to pay for 2025.
Following the Budget 2026 presentation in Parliament in October, Finance Minister II Datuk Seri Amir Hamzah Azizan informed reporters that the government is operating under the assumption that oil prices will range from US$60-US$65 per barrel next year, potentially reducing petroleum-related revenue.
The event was attended by several notable individuals, including Malaysian National News Agency (Bernama) chief executive officer Datin Paduka Nur-ul Afida Kamaludin and editor-in-chief Arul Rajoo Durar Raj. A total of 92 local and international media personnel were present.