Petronas percentage contribution to total Govt revenue to reduce

Published: Wednesday November 20, 2013 MYT 12:00:00 AM 

Updated: Wednesday November 20, 2013 MYT 8:27:47 AM

“I don’t think the rate of dividend from Petronas to the Government is that
high and unsustainable. Now we would increase the source and quantum
of revenue by implementing the GST,” Wahid said. - AZHAR MAHFOF/THE STAR (Filepic)

KUALA LUMPUR: The percentage contribution from Petroliam Nasional Bhd (Petronas) to the Government’s total revenue will reduce gradually as the goods and services tax (GST) takes effect, said Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar.

He said the contribution was just in the form of a percentage and did not reflect the value of the dividend paid to the Government. “The percentage revenue contribution (from Petronas) has been declining and we (the Government) have had to broaden our other sources of revenue.

“In 2011, the contribution amounted to about 35% of total Government revenue, but in 2012, it had come down to 33%. So moving forward, especially from 2015 onwards, with revenue from the GST, the proportion of Petronas’ revenue would come down as a percentage of total revenue.

“That is our long-term objective,” he told reporters after delivering a keynote address at the 18th Malaysian Capital Market Forum.

Earlier in a question-and-answer session, Abdul Wahid noted that Petronas’ dividend payout ratio to the Government has ranged between 30% and 50%.

Even at 50%, he said it was still acceptable for Petronas to invest in new growth areas as well as to give substantial returns to the Government.

“I don’t think the rate of dividend from Petronas to the Government is that high and unsustainable. Now we would increase the source and quantum of revenue by implementing the GST,” he said. – Bernama