Petronas targets 2026 dividend of 20B ringgit vs 32B in 2025

Petronas targets 2026 dividend of 20B ringgit vs 32B in 2025

Petronas to Pay 20 Billion Ringgit Dividend to Malaysia in 2026, Reflecting Oil Price Slump

Malaysia’s state-owned energy giant, Petroliam Nasional Bhd. (Petronas), is projected to pay a 2026 dividend of 20 billion ringgit ($4.7 billion) to the government, marking a 38% decline from the 32 billion ringgit contributed in 2025. The reduction stems from weaker oil prices and lower profitability at the company, according to the Ministry of Finance.

The anticipated drop in dividends aligns with forecasts of an average Brent crude price range of $60–$65 per barrel in 2026, down from an estimated $70 per barrel in 2025. This decline underscores global energy market volatility and its direct impact on Malaysia’s petroleum-dependent revenue. The 2026 payout will be the lowest since 2017, according to public records.

Petroleum-related revenue is expected to shrink further in 2026, totaling 43 billion ringgit—accounting for 12.5% of the government’s total revenue. This reflects a long-term trend of decreasing reliance on oil income, which once constituted over 40% of state coffers in 2009. To stabilize public finances amid energy price fluctuations, Malaysia is prioritizing improved tax collection and subsidy reductions. These measures aim to narrow the budget deficit to 3.5% of GDP in 2026, down from 3.8% in 2025.

The Finance Ministry’s 2026 spending plan, unveiled in October 2025, highlights the government’s strategy to diversify revenue streams and reduce vulnerability to commodity cycles. Petronas’ dividend cut also follows announced operational adjustments, including a planned 10% workforce reduction to align with profitability challenges.

For investors, the shift signals Malaysia’s broader fiscal recalibration, balancing short-term energy market headwinds with structural reforms to strengthen medium-term fiscal sustainability.

Bloomberg, October 10, 2025: Bloomberg, October 10, 2025.