Weaker Petronas undermines Malaysia's geoeconomic strength, says Wan Fayshal
Petronas, one of the world's leading oil companies, operates in over 50 countries, with major oil, gas and LNG projects across Africa, South America, Canada and the Asia-Pacific. (Reuters pic)
PETALING JAYA : While the Petroleum Development Act 1974 (PDA) has provided a solid foundation for generating revenue to support national development, emerging geoeconomic challenges—including Donald Trump's trade war—necessitate its further strengthening, says an opposition leader.
Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal said Petronas, as Malaysia's leading geoeconomic institution, requires strong backing to sustain its pivotal role as a long-term global player, over and above its role in contributing to the treasury.
'Petronas doesn't just generate revenue for the country, it has also developed talent, expertise, and strong diplomatic channels for Malaysia to expand abroad.
Wan Ahmad Fayhsal Wan Ahmad Kamal.
'It is the only homegrown multinational corporation (MNC) to have grown into a transnational corporation, with operations in more than 50 countries, and is one of the most important sources of revenue for our country,' he told FMT.
He said Petronas has also created numerous opportunities for other Malaysian businesses by introducing them to new markets.
'Petronas is not content with just being a local player as they have proven their worth in playing in bigger fields outside, such as Africa and South America.
'Whenever Petronas expands abroad, it also opens doors for our SMEs to penetrate those markets because we have a national champion acting as our 'battering ram', pushing Malaysia's interests aggressively overseas,' he said.
Petronas operates in over 50 countries, with major oil, gas and LNG projects across Africa, South America, Canada and the Asia-Pacific, cementing its reputation as one of the world's leading national oil companies.
Its extensive network of businesses and continued growth, coupled with a strict adherence to corporate governance requirements, has put it at No.167 on the Global Fortune 500 list, the only Malaysian company to make the cut.
Regional significance
Wan Fayhsal said the appreciation for Petronas's geoeconomic value extends beyond Malaysia to other Asean nations.
'As a former Petronas staff member, I know that when Indonesia faced the 1998 financial crisis, Petronas was one of the institutions that stepped in to help.
'The country (Indonesia) was hit hard, and Dr Mahathir Mohamad, (the late) Daim Zainuddin, and other Cabinet members (at the time) leveraged Petronas's resources to assist, including through the purchase of food supplies for our Indonesian neighbours,' he said.
Wan Fayhsal said this was one example of how Petronas's contributions have gone beyond Malaysia's borders to benefit the wider region.
He said the success of Petronas abroad has also enhanced Asean's reputation globally.
'When foreign businesses become familiar with Malaysian companies like Petronas, they are also more likely to engage with (our) Asean counterparts,' he said.
Wan Fayhsal said Petronas has set a strong standard and model for Asean companies, demonstrating the region's potential to compete on the global stage.
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