BOMBSHELL – DON’T SELL PETRONAS – GUAN ENG WARNS ‘TIN KOSONG’ ANWAR & PKR – SET UP A NEW NORWAY-LIKE FUND TO MANAGE ITS OIL & GAS REVENUE INSTEAD

Business, Politics | February 28, 2023 12:04 am by | 0 Comments

Guan Eng calls for Norway-like fund instead of Petronas sale

The former finance minister cautions the government against any sale of a stake in Petronas, which he described as a national treasure that is irreplaceable.

Subang MP Wong Chen had proposed that the government conduct a feasibility study on the floating of Petronas to pare down the national debt.

KUALA LUMPUR: Bagan MP and former finance minister Lim Guan Eng has cautioned the government against any proposal to sell a stake in Petronas.

Instead, a new sovereign wealth fund similar to Norway’s should be set up to manage oil and gas revenue.

Speaking during the budget debate in the Dewan Rakyat, Lim said Petronas was irreplaceable, as a national treasure that must be wholly owned by Malaysians. “If we lose ownership, it will affect the country’s strategic reserves.”

He was replying to Johari Ghani (BN-Titiwangsa), who asked if he agreed that a listing of Petronas shares could affect the nation’s revenue in the long term.

Lim cautioned against the sale of a stake in Petronas to pare down the government’s debts, and gave the example of the public offering by Aramco, Saudi Arabia’s oil and gas company, which failed to meet expectations.

Lim said the government should not depend on Petronas to settle its debts as such a move “would divert the responsibility away from those who borrowed the money”.

He said Malaysia’s overall national debt amounts to RM1.5 trillion, but the Norwegian fund controlled more than US$1 trillion (RM4.5 trillion) in assets.

The sale of a stake in Petronas had been mooted by Subang MP Wong Chen, who on Feb 14 called for a feasibility study to be carried out. He contended that a public listing of Petronas on Bursa Malaysia would pare down the national debt and improve the government’s revenue.

Norway has two sovereign wealth funds. The larger fund, known as the oil fund, was set up in 1990 to invest surplus revenue from Norwegian oil and gas. It is one of the world’s largest sovereign funds, and owns over US$1.19 trillion in assets amounting to 1.4% of all the world’s listed companies.

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