4 days ago
- Business
- Free Malaysia Today
Why squeeze high Petronas dividend amid profit slump, Hamzah asks
Bersatu deputy president Hamzah Zainudin said a looming 10% jobs cut in Petronas could have been avoided if the government had adjusted the dividend amount.
PETALING JAYA : Opposition leader Hamzah Zainudin has questioned the government's move to collect RM32 billion in dividends from Petronas, despite the company reporting a sharp decline in profits this year.
Hamzah said the dividend payout for 2025 matches that of the previous year, even though Petronas recorded a 32% drop in profits in 2024, after a 21% decline in 2023.
He said maintaining such a high payout raises questions about the government's fiscal priorities, especially as more than 5,000 Petronas employees (about 10% of its workforce) are expected to lose their jobs in a restructuring exercise.
'The government must clearly explain the rationale behind maintaining the RM32 billion dividend without taking into account Petronas's profit slump and the welfare of its employees. The rakyat deserves to know, is this what the government considers fair fiscal management?' he said in a statement.
Hamzah said the layoffs could have been avoided if the government had adjusted the dividend amount in line with Petronas's financial performance, rather than pushing the company to deliver the same amount.
Yesterday, Petronas announced plans to reduce its workforce and freeze hiring until December 2026 as part of a restructuring aimed at cutting costs amid falling crude prices.
Prime Minister Anwar Ibrahim today said most of those affected by the retrenchment are contract workers.
In February, finance minister II Amir Hamzah Azizan said that Petronas's commitment to paying RM32 billion in dividends to the government remained unchanged. However, he said that the payout would depend on Petronas's financial performance and the outlook of the oil market.
Separately, Bersatu vice-president Radzi Jidin reminded the government that the loss of jobs, whether of permanent staff or contract staff, would leave a big impact on them and their families. 'Humanity must always be at the heart of our actions,' Radzi said in a Facebook post.
