Hello and welcome! In this Sepupunomics Premium Institutions report, you will trace the extraordinary rise­­—and looming reckoning—of Petroliam Nasional Berhad (Petronas), Malaysia’s all-purpose fiscal lifeline and emblem of national ambition.

From its 1974 birth under the Petroleum Development Act to its present-day pivot toward carbon capture and renewables, Petronas has channelled hundreds of billions of ringgit into the federal budget, built skylines, rescued banks, and underwritten fuel subsidies that touch every Malaysian household. This deep dive details how successive prime ministers tapped Petronas dividends to finance Putrajaya, KLIA, and headline-grabbing “rainy-day” bailouts—yet also reveals the structural risks of hinging up to 40 percent of government revenue on a single, depleting resource.

With rigorous analysis of five years of federal accounts, the report shows exactly when and how Petronas moved the fiscal needle: RM 54 billion to plug tax-refund holes in 2019, RM 50 billion to pay record subsidies in 2022, and a projected RM 32 billion in 2024 as oil prices soften. You will see why every dip in Brent crude tightens Malaysia’s policy space, and how declining domestic fields, job cuts, and rising energy-transition costs threaten tomorrow’s dividends.

Beyond the ledger, the report explores Petronas’s strategic U-turns—from global LNG expansion to the launch of Gentari, its clean-energy arm—and compares them with the playbooks of Shell, BP, and other national oil companies. It weighs the benefits of a sovereign wealth fund, dissects East Malaysia’s royalty politics, and outlines what a “World Without Petronas” might have meant for taxes, megaprojects, and social programmes.

Whether you are a policymaker, investor, student, or simply curious about the forces that shape Malaysia’s budget, this report explains why Petronas has been both a blessing and a trap—and what must change before the wells run dry.

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