KUALA LUMPUR (Feb 24): Petroliam Nasional Bhd (Petronas) is expected to pay about RM40 billion in dividends to the government in 2023, slightly higher than the previous Budget 2023's headline RM35 billion.
Despite the latest adjustment, the figure is still lower than the RM50 billion dividend paid by the national oil and gas company in 2022, when the average Brent crude oil price exceeded US$100 per barrel.
Petroleum revenue is projected to decline by 20.9% to RM65.2 billion in 2023, in line with the projection of an average crude palm oil price of US$80 billion per barrel this year and Petronas' lower dividend, according to the Ministry of Finance's revised 2023 Economic and Fiscal Outlook report.
“The petroleum-related revenue to gross domestic product (GDP) ratio is estimated to decline by 3.5%, constituting 22.4% of total revenue,” the report said.
Non-petroleum revenue, meanwhile, is projected to increase by 6.8% to RM226.3 billion (or 12% of GDP), in consonance with the government’s initiative to widen the revenue base, coupled with measures under the Medium-term Revenue Strategy and continuous auditing.
Given the lower proceeds from investment income, mainly from Petronas' dividend, non-tax revenue is expected to be lower at RM73.2 billion, compared with RM85.6 billion in 2022.
The report also said Bank Negara Malaysia is likely to pay a lower dividend of RM2.75 billion in 2023, versus RM5 billion in the previous year, while Retirement Fund Inc's (KWAP) contribution is expected to remain at RM3 billion to partly finance retirement charges.
“Licences and permits are expected to decline by 9.3% to RM14.2 billion due to lower petroleum royalty, in tandem with the lower average crude oil price.
“However, other major components of licences and permits are forecast to increase to RM3 billion (motor vehicles) and RM3.5 billion (the levy on foreign workers),” it added.
