Beri Petronas ruang kewangan untuk kekal kukuh, kata penasihat DPMM

Petronas is not your typical oil company; it is a strategic asset for Malaysia, playing a crucial role in the nation's financial stability and economic development for many years. Petronas is not a source of extra money that can be tapped into whenever needed, according to a business leader, who stressed that the company must remain financially strong to continue investing and supporting Malaysia's future challenges.

The DPMM President's Advisory Council member, Abd Halim Husin, highlighted that Petronas should not be viewed as a regular oil company, but rather as a strategic national asset that has been vital in financial matters and economic development for Malaysia. He emphasized that any demand on Petronas, whether from federal, state, or other authorities, should be considered in the broader context of Malaysia's overall interests and long-term needs.

Abd Halim Husin added that Petronas has often been a "savior" for the country during economic and financial pressures, and it is essential to ensure that this lifesaver remains robust. He referred to Petronas' financial decisions for the first half of the year, which reported revenues of RM152.4 billion and post-tax profits of RM27.2 billion.

However, the company's operational cash flow of RM47.5 billion pales in comparison to its capital expenditure of RM41.4 billion. Petronas also announced a RM20 billion dividend to its shareholders. This shows that profits and free cash flow are not the same, he pointed out, emphasizing that Petronas still needs to fund exploration, new well and field development, LNG, asset management, national energy security, debt repayment, and future investments.

He noted that these matters are even more critical when Petronas itself warns about the volatile global energy landscape, geopolitical risks, and conflicts in the Western Asia. According to Halim, while the government, as a shareholder, is entitled to a return from Petronas, the dividend and other payment commitments need to take into account the company's actual ability, capital expenditure requirements, and national energy security needs.

He cautioned against taking too much from Petronas now, risking its future ability to generate income for Malaysia in the future. The broader impact of a financially strained Petronas, he said, would not be limited to the company alone. "The consequences could be far-reaching," he warned. He stressed that it is not just Malay contractors who would suffer; the entire OGSE supply chain in the country could be affected, including Malay and non-Malay contractors, PKS, engineers, skilled workers, manufacturers, logistics, fabrication, and many supporting industries.

However, he reiterated that Petronas has a unique interest in the Malay and Bumiputera business community. The Petronas Vendor Development Program, initiated in 1993, was created to build robust and competitive Bumiputera companies, he said. This economic development achievement of Bumiputera companies should not be taken lightly, he emphasized.

Nevertheless, he reminded that the local company cannot always count on such opportunities. Petronas has adopted a competitive bidding system, including in its vendor development program, while Malaysia's commitment under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will bring more sectors towards a more open and competitive market.

He cautioned against assuming that Malay contract opportunities with Petronas will always be guaranteed, as the company may need to be cautious with capital expenditure and costs when projects are reduced or delayed. When projects are cut or delayed, the impact will continue to trickle down to vendors. Therefore, maintaining Petronas' financial strength is also part of safeguarding the national industrial ecosystem and Bumiputra company development.