.JPG "Prime Minister Tun Dr Mahathir Mohamad speaks during a press conference after the tabling of Budget 2019 in Parliament November 2, 2018. u00e2u20acu201d Picture by Mukhriz Hazim")
KUALA LUMPUR, Nov 2 — The RM30 billion special dividend from Petronas will not burden government-linked companies (GLCs), said Prime Minister Tun Dr Mahathir Mohamad today.
Speaking at a press conference after Finance Minister Lim Guan Eng tabled Pakatan Harapan’s maiden Budget 2019, the prime minister said the petroleum giant has already taken the dividend into consideration.
“No, they have taken that into consideration. Of course, Petronas needs a lot of money to carry on with their exploration and such, but they can afford that amount.
“The price of oil has gone up quite high. If it was at US$40 per barrel, of course, they can’t give that kind of money, but now, it is around US$80 per barrel,” said Dr Mahathir.
The Fiscal Outlook and Federal Government Revenue Estimates 2019 Report stated the dividend will be sourced from Petronas’ accumulated retained earnings.
It will be used to fully settle the company’s outstanding tax refunds estimated at around RM37 billion. This comprises RM18 billion in income tax and RM19 billion in previous GST refunds.
In a statement, Petronas said it fully supports the government’s call for a special dividend payment in Budget 2019.
“Given PETRONAS’ strong fundamentals and liquidity position that is driven by the transformation efforts in the last few years in the areas of operational efficiency, cost reduction and portfolio optimisation, and supported by improved oil prices, the company is confident that the special dividend payment will not in any way impede our ability to service debts, fund our ongoing operations and invest in future growth,” it said.
