PETALING JAYA: Petronas is now more politically exposed than at any point in its history, says Malay business leader Yazid Othman.
Yazid, a council member of the Malay Chamber of Commerce, warned that shifting federal-state dynamics since 2018 have left the national oil company vulnerable.
Under Barisan Nasional's six-decade rule, he said, Petronas's position was secure because the federal government was stable and dominant.
He said BN's strength allowed Petronas to operate as a national institution, pooling resources from oil-producing states like Sarawak, Sabah, Terengganu and Kelantan and redistributing them through dividends and development spending.
"During the BN era, the centre was strong. Umno anchored the coalition, Parti Pesaka Bumiputera Bersatu (PBB) was part of it, and there was a clear national agenda. Nobody crossed the line," he told FMT in an interview.
He said that stability shifted after 2018 when the Sarawak bloc - now known as Gabungan Parti Sarawak (GPS) - broke away from BN and began asserting greater autonomy, notably through state-owned oil company Petroleum Sarawak Bhd (Petros).
"Suddenly the question was: Sarawak's agenda or Malaysia's agenda? If Sarawak takes more, other states like Sabah may follow. That will reduce what Petronas can channel to the federal government," Yazid said.
GPS was established in June 2018 by four former BN component parties in Sarawak - PBB, Sarawak United Peoples' Party, Parti Rakyat Sarawak, and the Progressive Democratic Party - after BN's defeat in the 14th general election, which ushered in the first Pakatan Harapan government.
GPS emerged as the kingmaker after the 15th general election, when no coalition won a clear majority and its 23 parliamentary seats became essential to forming Prime Minister Datuk Seri Anwar Ibrahim's unity government.
Yazid said Anwar faces a tougher balancing act than his BN predecessors, as his unity government depends on support from Sarawak parties.
He said the government is now caught between competing demands - Sarawak's push for greater control over its resources and Putrajaya's reliance on Petronas dividends to stabilise national finances.
"If the Sarawak bloc pulls out, the government could fall. But the prime minister must not allow himself to be bullied and must always put national interests first," he said.
"Because if dividends from Petronas drop, how do you fund civil service salaries, subsidies and development projects? Where do you find the missing billions?"
Tags: Sarawak, Petronas, Petros, Yazid Othman, government, stability, BN, Pakatan Harapan
