Tan Sri Mohd Hassan Marican, the acting chairman and president of Petronas is absolutely correct when he commented that Malaysia under the rule of the Barisan Nasional government has become too dependent on money from the oil and gas sector as its contribution accounted for over 50% of the Government’s revenue. But of course most people know this except for the government officials at Putra Jaya.
Tan Sri Mohd Hassan Marican said it was very dangerous for the country to depend so heavily on “finite resources like gas and oil” and it would seem like the country had not progressed. Again, so true.
The current government indeed like to spend lavishly without considering that funding will slowly become limited and does not think deep into the future. Unlike a tiny republic state of Singapore, Malaysia have abundant natural resources as well as manpower. However, due to lack of planing or improper planning, only certain groups benefits from the exploitation of those natural resources.
Singapore being a small republic is much more develop than Malaysia. Her economy also outperformed Malaysia. Singapore is always a few step ahead of Malaysia because they have one advantage, i.e. smart and non-corrupt officials in their think tank committee that do advance planning, forecasting and come out with good policies.
When the oil run dry and when Petronas can no longer give money to the government, Malaysia will be like a poor state in Africa.
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* Response from PETRONAS
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Source: TheStar
KUALA LUMPUR: The country has become too dependent on money from the oil and gas sector as its contribution accounted for over 50% of the Government’s revenue, said Petronas acting chairman and president Tan Sri Mohd Hassan Marican.
He said it was very dangerous for the country to depend so heavily on “finite resources like gas and oil” and it would seem like the country had not progressed.
“It is just like when we gained independence, when we were dependent on rubber and tin. At least then, rubber was an infinite resource because it could be cultivated but petroleum is just like tin as it can run out,” he said.
“What has happened to the manufacturing sector? What has been its economic contribution to the nation? There are real structural issues,” Hassan told reporters after releasing details of Petronas' performance for the financial year ending March 2008.
He said the country received billions of ringgit worth of foreign investments to set up factories here but yet their national contribution could not be seen.
Foreign workers staff many of the overseas factories set up here, the Petronas boss said.
He questioned whether the country could “survive in the long term” under such conditions.
Hassan pointed out that the national oil corporation paid the Government RM67.6bil, which made up 44% of the federal revenue.
“If you take into account taxes paid by the other oil and gas companies in the country, then the total sectorial contribution is over 50%,” he said.
“This dependency on oil money has become an addiction and something the Government must address.”
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Petronas revenue shot up to RM223.1 billion, up 21.2% from RM184.1 billion last year. A whopping increase considering that most companies are struggling to even sustain their revenue.
Of RM223.1 billion, three oil producing states of Malaysia namely Terengganu, Sarawak and Sabah receiving RM4.8 billion in royalty. That's about RM1.6 billion for each of those mentioned states.
That amount is like a drop of water in a big ocean. The beneficiary of course is the federal government. Federal government means the Barisan Nasional and Barisan Nasional means UMNO.
Putih mata lar orang Terengganu, Sarawak dan Sabah.
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Extract from: Sun2Surf
Petronas declares RM6 billion special dividend to government
KUALA LUMPUR ( July 15, 2008 ) : National oil company Petronas will pay a special dividend of RM6 billion to the government this year.
Petronas president and chief executive officer Tan Sri Mohd Hassan Marican who announced this today said the special dividend was worked out, after Petronas took into account its capital expenditure needs.
"We are owned by the government and our financial result has been exceptionally good this year," he said, when announcing the financial results for the year ended March 31.
"We don't need that much to reinvest for the future, so, we are able to increase our dividend for the government," he said at a press conference.
Overall, an "exceptionally good financial year" due partly to high crude oil prices, has enabled Petronas to contribute RM62.8 billion to the federal government's coffers for the year.This represents 44% of the federal government's revenue.
Petronas also paid RM4.8 billion in royalties to the state governments of Terengganu, Sarawak and Sabah.
The RM67.6 billion paid to the federal and state governments represented 63.1% of the group's profit.
Mohd Hassan said overall, RM403.3 billion had been paid to the federal and three state governments since 1974.
He said this year's payment to the federal government comprised:
>> royalty: RM4.7 billion;
>> dividends: RM30 billion including the RM6 billion special dividend "which will be paid this year";
>> petroleum income tax: RM20.6 billion;
>> corporate income tax: RM5.4 billion; and
>> export duties: RM2.1 billion.
He attributed the performance not only to higher oil prices and sales volume but overall improvement in the group's operational efficiency and prudent management.
Petronas' pre-tax profit increased to RM95.5 billion, up 25.2% from RM76.3 billion previously, while net profit rose to RM61 billion, up 31.5% from RM46.4 billion.
Revenue shot up to RM223.1 billion, up 21.2% from RM184.1 billion last year, amidst a more complex and increasingly challenging global oil and gas industry environment, he said.
Petronas' international operations, which constituted 40.3% of the total revenue, was the biggest contributor to the group's revenue for the first time, overtaking exports. The revenue from the international operations increased by 33.1% to RM90 billion.
"This signifies not only the growing importance but also the success of the group's international operations," he said.
Mohd Hassan said most of the international revenue came from Africa, the "continent that we first identified way back 1995, that we will focus on our globalisation process".
So far, it has proven to be a right strategy, he said, adding that the international operations will continue to be the main contributor to group revenue.
As for reserves, he said as at Jan 1, Malaysia's total reserves declined slightly to 20.13 billion barrels of oil equivalent (boe) from 20.18 billion boe last year.
This was the result of downward revisions in gas reserves offshore Sarawak and higher production of crude oil and gas during the year despite additions through new discoveries, he added.malaysia ~ If you like this informative post, please subscribe to my full RSS Feed
