MP warns against over-reliance on Petronas amid Sarawak dispute and Hormuz risks

In the Dewan Rakyat debate on the 2027 budget, MP Wan Fayhsal urged the government to exercise restraint in demanding budget support from Petronas, emphasizing the firm’s role as a long-term engine for Malaysia’s oil and gas sector. He pointed out that while the budget expects a RM32 billion contribution from Petronas, the company’s cash pool has declined to RM193.6 billion and its net cash position is at a five-year low.

Wan highlighted ongoing Federal Court petitions between Petronas and the Sarawak government over the applicability of state and federal oil and gas laws, a dispute that could affect more than 60 % of the nation’s gas reserves. He also referenced the recent Hormuz crisis, which raised crude prices and shipping costs, and stressed Petronas’s responsibility to maintain domestic fuel supply. The MP called for transparency on how Petronas will meet these challenges while continuing to support the national budget.