Budget 2026: Petronas dividend to govt slashed by RM12b

BUDGET 2026 | The government appears to be anticipating a tough year ahead for Petronas.

Under Budget 2026, the oil and gas giant is only projected to pay the government RM20 billion in dividends next year.

This is RM12 billion lower - a 37 percent drop - from the RM32 billion payout it is making this year.

Putrajaya’s fiscal outlook document doesn’t specify why the dividend is being slashed, but the government is expecting crude oil prices to be more moderate next year.

Besides the payout from Petronas, petroleum income tax is also expected to be RM1.2 billion in 2026.

Petronas is in the midst of cutting its workforce by 10 percent amid falling crude oil prices. It has also frozen hiring until the end of next year.

While prospects are bleak for Petronas, the government is decreasing its reliance on petroleum revenue to fill its coffers.

Find out more in our Budget 2026 visualised report.

Petronas-linked stocks slide on concerns of Sarawak operations

Putrajaya, S'wak sign joint declaration on Petronas, Petros

Petronas not exiting Canada, group CEO reaffirms

Petronas layoffs due to global challenges, not Petros issue - Fadillah