By Ashley Sim
KUCHING, Aug 6: Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has declined to comment on former Economy Minister Rafizi Ramli’s caution that any missteps in negotiating gas resource ownership and revenue distribution between Petroliam Nasional Berhad (PETRONAS) and Petroleum Sarawak Berhad (PETROS) could trigger serious repercussions for Malaysia’s economy.
“That is his view. I have no comment,” Abang Johari told reporters after officiating the Public Sector Financial Transformation Conference 2025 at a hotel here today.
According to news reports, Rafizi, in the latest episode of his podcast ‘Yang Berhenti Menteri’, warned that if Sarawak’s claims over gas resources are accepted without due regard for Malaysia’s existing financial structure, PETRONAS could face annual revenue losses of between RM15 billion and RM20 billion.
“It is not a paltry sum,” he said, adding that PETRONAS contributes between RM30 billion and RM35 billion annually to the federal government.
A significant reduction in PETRONAS’ revenue, Rafizi cautioned, would severely impact the country’s ability to fund public services including schools, hospitals, infrastructure projects, pensions, and civil servant salaries, not just nationally but also in Sarawak.
Although the revenue is not channelled directly to Sarawak’s state treasury, Rafizi pointed out that federal funds sourced from PETRONAS dividends are used to develop schools, hospitals, and roads within the State.
“So, if PETRONAS loses RM20 billion, the company will be unable to pay the RM35 billion in dividends to the federal government,” he added.
He further warned that a significant dip in PETRONAS’ contributions could result in a downgrade of Malaysia’s credit rating, subsequently increasing government borrowing costs.
“Malaysia is already paying RM48 billion annually in interest payments, and that could rise to RM60 billion if our credit rating is downgraded due to instability in the oil and gas sector,” he said. — DayakDaily
