Last week I attended a lecture – The Political Framework of Malaysian Politics – by Tan Sri Dato’ Dr. Nordin Kardi, the Vice Chancellor of Universiti Utara Malaysia. He touched briefly on PETRONAS and the above is one of his slides. In response to a question by one of the audience who inquired why PETRONAS is not giving a lot of money back to the oil states (such as Sabah and Kelantan) since they are making a lot of money, he replied that although the giant corporation is making a lot of money, the income from Malaysian oil is only a part of the total revenue of PETRONAS. He added that PETRONAS have oil businesses in foreign countries such as Sudan, Russia and Nigeria.
I think the more pertinent question is: Since the Malaysian government is the sole shareholder of PETRONAS, why is the giant conglomerate contributing by just paying taxes only?