Malaysia is poised to receive a bigger check from Petroliam Nasional Bhd. next year. The state energy company is set to raise its dividend payout by 19%, with 32 billion ringgit slated for 2027 compared with 27 billion ringgit in 2026. Separately, the planned 2026 transfer has been lifted significantly from an initial pledge of 20 billion ringgit.
Stronger energy prices are doing the heavy lifting. Amid the US war with Iran, Brent has moved above $100 a barrel, signaling a break from years of softer results for the state oil and gas company. In step with that, Petronas posted a 4% year over year rise in net profit to 27.2 billion ringgit for the first six months of 2026.
State energy dividends fund a large share of some national budgets. Market Briefs covers that dependence free every weekday.
Oil is set to play a bigger role in the budget than policymakers had planned. Authorities now expect prices to average $85 a barrel in 2027, close to the roughly $89 average so far this year. Earlier, Brent was projected to average $60 to $65 this year, but conflict in Iran squeezed supplies and lifted prices.
Petroleum-related revenue is forecast at 61.2 billion ringgit in 2027, equal to 16.1% of government receipts, up from a revised 15.1% this year. That is well below 2009, when oil and gas provided about 41% of total income.
Despite ranking among the world's largest liquefied natural gas exporters, Malaysia still brings in more oil than it ships out. Petronas is tasked with securing domestic fuel supply and is currently in a dispute with Sarawak's Petroleum Sarawak Bhd. over gas distribution rights in the Bornean state.
Bigger Petronas dividends and firm oil prices can shift how the government funds itself and where it spends. If petroleum revenue stays elevated, it can change the mix of taxes and subsidies that ultimately show up in everyday costs like transport and utilities. It is worth watching how those budget lines evolve over the next year.
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