By DayakDaily Team
KUCHING, Dec 4: The current 5 per cent cash royalty to federal government and producing states, including Sarawak, totals RM5.6 billion, representing only a small fraction of Petroliam Nasional Berhad’s (PETRONAS) total petroleum revenue.
Addressing claims that increasing the royalty to 20 per cent to the states from 5 per cent, as promised in 2018, would severely strain PETRONAS finances, Senator Robert Lau said data shows that royalties account for only a small portion of total petroleum revenue.
He emphasised PETRONAS’ pre-tax profits were approximately RM132 billion in 2022, RM90 billion in 2023, and RM80 billion in 2024, highlighting that royalties form only a small fraction of the company’s total petroleum income.
He highlighted Malaysia’s continued dependence on oil and gas, which accounts for nearly 20 per cent of federal revenue.
“This includes dividends from PETRONAS, direct income taxes, export duties, royalties, and levies on crude oil and LNG exports.
“In 2024, PETRONAS’ dividend contribution stood at RM32 billion, petroleum income tax at RM20.5 billion, levies on crude oil and LNG at RM12 billion, and export duty on crude petroleum at RM1 billion, though the federal financial statement did not specify LNG export duties.
“Customs duties totalled RM5.16 billion, of which crude petroleum accounted for RM1.011 billion, leaving an unexplained balance of about RM3.1 billion that could include LNG duties,” he said when debating Budget 2026 in Dewan Negara today.
He also highlighted that since its inception, PETRONAS has contributed around RM1.5 trillion to the nation in dividends, taxes, and other payments.
Lau also renewed calls for a Royal Commission to examine PETRONAS’ finances, governance, and reporting practices.
He proposed the commission should investigate the corporation’s actual profits since inception, how its wealth has been utilised, and recommend a new governance and reporting structure.
“Unlike other government-linked entities, PETRONAS reports only to the Prime Minister and its annual report is not tabled in Parliament. This is extraordinary, given that PETRONAS contributes about 20 per cent of national revenue,” he said.
He noted that Section 3(2) of the Petroleum Development Act gives the Prime Minister full control over the corporation.
Lau emphasised that a Royal Commission would enhance transparency, credibility, and public confidence, particularly in producing states whose natural resources fuel national revenue.
“It would ensure that this wealth is properly managed and that Petronas’ top management is accountable,” he added. — DayakDaily
