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Higher royalty versus state ownership of Petronas

The oil royalty debacle is perhaps one of the popular components for both Barisan Nasional (BN) and Pakatan Rakyat (PR) as the nation approaches polling day on 5th May. In Kelantan, the “R” for “royalty” movement has in fact been proliferating, especially amongst PR supporters. For years, we have seen the fight for royalty highlighted by the four producing states, …

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Malaysia’s Oil Royalty Rumble

One of the issues that are bound to crop up in the 13th general election campaigns is the oil royalty. In the past, many reasons have been presented by political parties from both sides of the divide on who is entitled to what. Perhaps this article will help shed some light on the issue. When rulers and representatives of the …

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Is Malaysia’s Rigid Fiscal Regime the Best Recipe for Petronas’ Success?

Daniel Johnston, in his book International Petroleum Fiscal Systems and Production Sharing Contracts dubbed Malaysia as having “one of the toughest fiscal systems in South East Asia” after an extensive research covering 148 oil and gas-producing nations and their respective petroleum taxation systems. In simpler language, he means that we have the toughest regulations to ensure we get the most …

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