Petronas special dividend should be a special payout

Cash reserves: A worker is seen at a construction site, with the Petronas Twin Towers in the background. According to Moody’s, Petronas’ net cash position was RM97bil as at end-June 2018.

THE special dividend of RM30bil by Petroliam Nasional Bhd (Petronas) that was announced in Budget 2019 was a surprise.

It caught ratings agencies by surprise. Moody’s Investors Services maintained Petronas rating at A1 but with a negative outlook on concerns that the government could continue to tap on the coffers of the national oil company to fund its shortfall in revenue.