KUALA LUMPUR: The government is urged not to make the people the scapegoat in facing the decline of global oil revenue. This call comes following reports that the national oil company, PETRONAS, plans to lay off up to 5,000 contract workers and freeze hiring and promotions.
Director of the Policy and Research Department of the PAS Central Information Committee, Ir. Ts. Nurul Islam Mohamed Yusoff, described the move as “a shortcut that oppresses powerless ordinary citizens.”
“Even contract workers have families to feed. Why are they the ones sacrificed when profits decline? The government should reduce the dividends taken from PETRONAS, not slash its workforce,” he said in a statement today.
He also questioned the government’s refusal to recalibrate its dividend demands in line with drastic changes in global oil prices.
PETRONAS had previously planned its finances based on Brent oil price projections between USD75 to USD80 per barrel. However, current prices have plunged to around USD65 per barrel — a nearly 16.1% drop from initial estimates — directly affecting the company’s revenues.
Despite the expected decline in earnings for 2025, the dividend payout to the government is projected to remain high at RM32 billion – the same as the previous year, even though Brent prices have dropped significantly.
“Does it make sense for revenue to fall, but the government still demands the same dividend amount?” he asked, referring to data showing that dividends to the government once stood at RM25 billion when Brent prices were around RM293 (in 2021).
He emphasized that draining PETRONAS to maintain government cash flow is an unsustainable short-term strategy that will severely impact thousands of households.
“Is this the kind of economic approach from the former ‘Best Finance Minister in Asia’ – squeezing PETRONAS dry like a cow until only bones are left?” he said sarcastically, referring to the Prime Minister who also holds the Finance Minister portfolio.
The government is also urged to immediately consider reviewing the dividend rates demanded from PETRONAS and to prioritize the welfare of workers. – HARAKAHDAILY 07/06/2025
