IN a pointed clarification over the role of national oil wealth in supporting public spending, Petronas’s profits should not be viewed as a direct reservoir for subsidy funding, as the company is not a government cash pool, a senior aide to the Prime Minister has said.
Tengku Zafrul Abdul Aziz stressed that while the national oil corporation contributes significantly to state coffers, it remains a commercial organisation bound by financial responsibilities and investment needs that limit how far its earnings can be drawn down for fiscal support measures.
He noted that in 2025, the company recorded revenue of RM266 billion and a profit of RM45.4 billion, figures which may appear substantial but do not represent free or immediately available surplus funds.
“Take for example 2025, Petronas recorded revenue of RM266 billion and a profit of RM45.4 billion. It looks large, but that is not free money because it is needed to repay debt, invest and sustain operations.”
He further underlined that government access to these funds is partial and structured, not absolute, adding that the company has already made significant contributions to national development over the decades.
“The government only takes a portion, and in fact Petronas has already helped the country significantly, including RM20 billion in dividends for 2026 and around RM1.5 trillion since 1974,” he said in a Facebook post on Saturday.
The adviser also cautioned against the perception that oil-linked revenues can indefinitely sustain expanding subsidy commitments, pointing out that current subsidy expenditure levels far exceed incremental gains from petroleum income.
He said subsidies are currently estimated at around RM4 billion per month or RM48 billion annually, while additional oil-related revenue is only in the region of RM10 billion to RM14 billion, creating a structural gap between obligations and available resources.
To illustrate the risks of unsustainable spending, he drew an analogy likening fiscal mismanagement to an overextended small business owner.
“Imagine a trader, Ali, who freely spends money at the counter. At the end of the month, suppliers come demanding payment, stock needs to be replenished but there is not enough money.
“Then Ali is puzzled, the shop is doing well but where has the money gone because it has all been spent. We do not want Petronas to become like that.
“If all profits are used up, investment stops, production falls, and future revenue declines. This is not saving, this is consuming the future,” he said.
He concluded that the central policy issue is not whether Petronas is profitable, but whether national wealth is being managed in a way that balances present needs with long-term fiscal sustainability, ensuring future generations are not compromised by current spending pressures. - April 11, 2026
