Petronas to pay Malaysia a 20 billion ringgit dividend in 2026, lowest in nine years, due to lower oil prices and weaker demand.

Petronas is expected to pay Malaysia’s government a 20 billion ringgit dividend in 2026, the lowest in nine years, down from 32 billion ringgit in 2025. The decline is attributed to lower oil prices, reduced gas production, and weaker demand from key Asian markets. Government revenue from petroleum is projected to drop to 43 billion ringgit, while overall non-tax revenue is forecast to fall 9.9%. To offset the shortfall, non-petroleum revenue is expected to rise 8.1%. The government plans fiscal reforms, including a carbon tax and higher alcohol and cigarette taxes, as part of Budget 2026.