Tuesday , July 5 2022

Rethink plans to raise dividends from Petronas, called Putrajaya


PETALING JAIA: The economist has invited Putrajah to reconsider his plans to collect some RM80 billion in the Petronas dividend, following a decision by the US rating agency to lower the prospects of the oil giant from stable to negative.

Barjojai Bardai of Tun Abdul Razak University said that although Moody's view was based on government plans for Petronas, and not dividends already paid, it was bearing weight as it came from a renowned rating agency.

FMT said that Putrajaya could still review his plans as the 2019 budget was based on a conservative $ 70 barrel and included the introduction of four new taxes as well as an increase in some of the existing taxes.

He recommended that the government adopt a "wait and see" approach to determine how much additional revenue it could raise from oil and tax increases instead of relying on dividend payments from Petronas.

Former Finance Minister Joharia Abdul Ghani said in the past that an increase of only 1 US dollar per barrel in the world oil price could see the government earning an income of RM300 million a year.

Barjojai said the government should talk to Moody's and explain that the plan for collecting higher dividends from Petronas was not placed on the rock.

"On the other hand, lowering Petronas' perspective may affect his chances of securing the financing of major projects in the future," he added.

Universities Malaysia Kelantanova Abu Sophia Jakobova said that it is natural that Petronas credit rating is accelerating after the budget was submitted in 2019, where Finance Minister Lim Guan Eng touched the dividend payment.

Abu, who is from the faculty of Entrepreneurship and Business, said the government is sending signals that Petronas, like a goose that puts golden eggs, will be forced to lay it down.

"If the price of oil does not increase in the near future or there are other investment income for Petronas, the look will remain.

"My advice to the government is to revise the plan and try to get revenue from other sources or government-related companies."

Yesterday, former Prime Minister Najib Razak warned that the country's credit rating could be hit after Moody's decision to reduce the appearance of Petronas.

Moody said the rating was due to the government's announcement that Petronas will pay RM26 billion dividends in 2018 and RM54 billion (including a one-time special dividend of 30 billion RM) in 2019.

On November 2, Prime Minister Mahathir Mohammad said Petronas could contribute to a special $ 30 billion dividend to the federal government in 2019 due to higher oil prices.

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