Rafizi Warns Petronas Revenue Loss Could Undermine National Economy, Credit Rating

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Former economy minister Rafizi Ramli has cautioned that poorly managed negotiations between Petronas and Sarawak’s state oil firm Petros could cost the national oil company RM15–20 billion annually, potentially destabilising Malaysia’s economy. Speaking in his podcast Yang Berhenti Menteri, Rafizi stressed that Petronas contributes RM30–35 billion yearly to the federal government. Any sharp revenue decline could impact public services and trigger a credit rating downgrade, increasing national debt servicing costs from RM48 billion to as high as RM60 billion.

He emphasised that while Sarawak rightfully deserves more from its resources, demands must be balanced with Petronas’ financial sustainability and long-term investment contracts. Abrupt changes, Rafizi warned, could scare off investors and disrupt multibillion-ringgit projects. International players like ConocoPhillips have already withdrawn from Sarawak, citing legal uncertainty. He urged a “win-win” solution that ensures Sarawak’s fair share without jeopardising Malaysia’s economic stability or investor confidence.

Petronas Revenue Loss

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