Petronas dividends to fund just 5-6% of 2026 federal revenue
Petronas is expected to pay the government RM20 billion in dividends for 2026, which will account for only 5% to 6% of the projected RM343.1 billion in federal revenue, the Finance Ministry said.
Source: RSS · August 23, 2026 at 5:30 PM · AI-assisted report
Single-sourcePUTRAJAYA, 24 AUGUST 2026 —
Petronas is expected to pay the government RM20 billion in dividends for 2026, which will account for only 5% to 6% of the projected RM343.1 billion in federal revenue, the Finance Ministry said.
Market Impact
The dividend forms part of the RM72.7 billion in non-tax revenue the government plans to collect next year. Tax receipts are forecast at RM270.4 billion, or more than 70% of total revenue. The ministry said this shows the government is not overly reliant on the national oil company.
Petroleum-related revenue peaked at 41.3% of total receipts in 2009. Measures introduced since 2023 have cut that share to 17.5% in 2025 from 28% in 2022, the ministry said. The proportion is projected to fall further to 12.5% in 2026.
The government’s Medium-Term Revenue Strategy includes digitalising tax administration through phased e-Invoicing. It will broaden the Sales and Service Tax base by raising the service tax rate to 8% from March 2024 and introducing a sales tax on low-value goods from January 2024. Other steps include higher excise duties on sugar-sweetened beverages, alcoholic drinks and tobacco, as well as revised export duties on crude palm oil.
The ministry also cited broader economic policies under the MADANI Economy framework. Stronger growth, it said, will strengthen public finances. Fiscal management now covers revenue reform, expenditure control, borrowing limits and debt monitoring, according to a written parliamentary reply dated July 6.
Related: Putrajaya