Amir Hamzah: Putrajaya to cut reliance on Petronas, eyes SST expansion for extra RM5b revenue

Amir Hamzah: Putrajaya to cut reliance on Petronas, eyes SST expansion for extra RM5b revenue



For 2024, Petronas has committed to a dividend payout of RM32 billion to the federal government. — Picture by Firdaus Latif

Sunday, 09 Mar 2025 9:53 AM MYT


PUTRAJAYA, March 9 – Putrajaya will continue reducing its reliance on local oil and gas giant Petronas for revenue, with the sales and services tax (SST) set to generate additional revenue rather than a return to the goods and services tax (GST).

Sunday Star quoted Finance Minister II Datuk Seri Amir Hamzah Azizan saying that Petronas’ contribution to government revenue had dropped to about 19 per cent to 20 per cent in 2023 from over 40 per cent previously.


“For future projections, we aim to bring this down to around 15 per cent to 16 per cent while simultaneously growing other sources of revenue,” he was quoted saying.

Amir Hamzah also said that the Anwar administration’s Madani Economy Framework emphasises economic diversification, with foreign direct investment (FDI) playing a key role in sectors such as construction, particularly data centres and new factories.


He highlighted that Malaysia recorded RM378.5 billion in total approved investments last year, with a higher rate of conversion from approvals to actual investments.

Amir Hamzah also touted the expansion of the SST scope, as announced in Budget 2025, which is projected to generate an additional RM5 billion in revenue.

He downplayed the return of GST, saying it would require up to two years of transition for industries that emerged during the SST implementation.

“The industries must be coached on how to do it, and new systems need to be installed. It is not just a matter of turning on and off again,” he reportedly said in a separate article.

Amir Hamzah said the SST has been in place for over four decades and is more familiar to local businesses.

The Finance Ministry told the Parliament last month that it will continue refining the existing SST which has been in use for over 40 years.

It said Putrajaya has collected RM476.1 million from the Low-Value Goods (LVG) tax in 2024, following its implementation on January 1 that year.

Meanwhile, the Service Tax on Digital Services, which was introduced in 2020, generated RM1.6 billion in revenue in 2024.