KUALA LUMPUR, MALAYSIA April 11, 2026 – April 2026 – Investment, Trade and Industry figure, Datuk Seri Utama Tengku Zafrul Tengku Aziz has cautioned against the idea of using all of Petronas’ profits to fund subsidies, stressing that the national oil company is a commercial entity with its own financial obligations and long-term investment needs.
In a video message posted on X (formerly Twitter) yesterday, the Chairman of the Malaysian Investment Development Authority (MIDA) and President of the Badminton Association of Malaysia explained that while Petronas records substantial profits, these cannot be fully “swept” for immediate spending without risking the company’s future operations.
“Not all ‘profits’ can be spent straight away. If we take everything today, there may be nothing left tomorrow,” Tengku Zafrul wrote, accompanied by the hashtags #TZA #MADANIBekerja #EkonomiRakyat #MalaysiaMadani.
Using 2025 figures as an example, he noted that Petronas reported revenue of RM266 billion and a profit of RM45.4 billion. However, he pointed out that the company must service debts, fund ongoing investments, and cover operational costs. The government ultimately receives only a portion of the profits in the form of dividends.
He highlighted that Petronas contributed RM20 billion in dividends for 2026 and has transferred approximately RM1.5 trillion to the country since 1974 – but this is not an unlimited or “free” resource.
On subsidies, Tengku Zafrul revealed that current fuel subsidies alone cost around RM4 billion per month, or RM48 billion annually, with additional oil-related subsidies estimated at RM10–14 billion a year. He argued that even the full dividend from Petronas would not be sufficient to cover all subsidies indefinitely.
Drawing an analogy to a small business owner, he said: “Imagine Ali has a small shop. Every time he wants to spend, he just takes money from the cash register. At the end of the month, the supplier comes for payment, stock needs to be replenished… if everything is spent on consumption, the business will collapse.”
He warned that depleting all profits would halt future investments, reduce production capacity, and ultimately “eat into the future” rather than build it.
“The issue is not whether Petronas makes a profit or not,” Tengku Zafrul concluded. “It is about how we manage the nation’s wealth so that it is enough for today and still remains for tomorrow.”
The statement comes amid ongoing public debate on Malaysia’s subsidy rationalisation programme under the Madani government. Tengku Zafrul’s remarks appear aimed at explaining the government’s balanced approach to fiscal responsibility while protecting long-term economic stability.
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