Rejected: Motion on lower Petronas profits

Rahmah Ghazali | Dec 14, 09 4:12pm | Malaysiakini

Opposition Leader Anwar Ibrahim failed in his bid today to move a motion in the Dewan Rakyat to debate the significant dip in the profits of national oil and gas company Petronas.

Deputy speaker Wan Junaidi Jaafar decided that the matter is not sufficiently urgent to be debated, although it is an issue of public importance.

Unhappy with the outcome, Anwar (PKR-Permatang Pauh) pointed out that it is important for the House to debate an issue which will have a huge impact on the economy.

Petronas’ net profit before tax for the first half of the financial year was RM31.2 billion, compared to RM63.3 billion in the same period last year, he said.

Its revenues dipped by 37.5 percent to RM98.2 billion from RM157.2 billion. The drastic decline in crude oil prices at around US$75 (RM255) per barrel had affected its income.

In short, he argued, the 2010 Budget tabled in Parliament last month will be short of about RM57 billion.

When tabling the motion, Anwar said the budget relies on Petronas for more than 40 percent of the national revenue from tax and dividends. He therefore called for the budget speech to be re-tabled for debate.

It is important for Prime Minister Najib Abdul Razak, who is also the finance minister, to explain the issue to the people, he said.

“Our position is not to ask for a total revamp of the budget, but the government has to explain if there will be any reduction of the allocations,” he said.

Small concession won

Unconvinced with this argument, Wan Junaidi said the prime minister would have already considered the matter when he tabled the budget speech.

“The government has taken into consideration that oil prices have fallen this year. So there is no need to debate the motion. Petronas has assured that it can pay the dividend to the government,” he said.

Responding, Lim Kit Siang (DAP-Ipoh Timor) sarcastically asked if Wan Junaidi is qualified to speak on behalf of the prime minister.

Remaining unperturbed, the deputy speaker merely said that the motion is not urgent enough for debate.

At this juncture, other opposition parliamentarians stood up to argue about the decision, causing a stand-off that lasted almost 30 minutes. Wan Junaidi stuck to his decision.

Eventually, Lim said that Najib should be told to explain the situation in his winding-up speech, or at very least, issue a statement.

  1. #1 by Dipoh Bous on Monday, 14 December 2009 - 6:38 pm

    Does NR think that it’s an issue of public importance? His silence will surely suggests that he thinks otherwise.

  2. #2 by frankyapp on Monday, 14 December 2009 - 6:58 pm

    Wow,petronas pre-tax profit down from 63 billion to 31 billion and this would contribute a shortage of 57 billion in the 2010 budget and yet the idiot DP said it’s not qualified to debate.What kind of stupid idiot is this DP .He should be disqualified immediately as DP.Wonder this idiot knows how pretty much bonuses the advicer,the chairman and the rest of the cronies sitting duck committee members of the board of Petronas have been paid.As a PM crony,nothing could we expect from him especially all those matters pertending to his boss.Even if a packet of maggie instant mee goes up to RM6.00,this idiot won’t care a dime as almost everything he eats is at the expense of the tax payers money.He gets his fat wages and bonus,and like big fat cat,he simple sleeps ,and don’t bother at all the suffering of the people he claims he represented. It’s time to exterminate this good for nothing sleepy cat for once and for all.

  3. #3 by k1980 on Monday, 14 December 2009 - 7:23 pm

    Petronas’ net profit before tax for the first half of the financial year was RM31.2 billion, compared to RM63.3 billion in the same period last year.

    So that’s the reason GST is to be implemented soon, to make up for the shortfall.

    However if the govt wastage of RM28 billion is added to the RM31.2 billion, the losses would not have been that serious.

  4. #4 by -ec- on Monday, 14 December 2009 - 7:46 pm

    simply compare the financial performance of a few oil companies with petronas, a dip of profit of such magnitude is definitely not the trend across all these oil companies.

    the problem is mismanagement of the petronas by bn cronies. a prudent and responsible management would have hedged the price and volume exposures of the resources hence such sudden fluctuation of profit should have not have happened.

    another problem could have been the greeds of petronas to accept unusually high risk appetite and unhedged exposures during the oil price hike and now when price is dropped, so is the revenue.

    and now when the oil profit is down, the rakyat is suffered: gst and electricity bills up!

    the ceo of petronas needs to go!

    do not scapegoat the economic condition it is mismanagement!

  5. #5 by -ec- on Monday, 14 December 2009 - 7:47 pm

    …and the thing to ‘r’eject is the house speaker. no sense of priority!

  6. #6 by OrangRojak on Monday, 14 December 2009 - 7:55 pm

    I can’t believe your question is described as ‘sarcastic’! ‘Naturally’ is correct.

  7. #7 by Ramesh Laxman on Monday, 14 December 2009 - 8:08 pm

    Mr. Speaker, Sir, your slip is showing.

  8. #8 by Godfather on Monday, 14 December 2009 - 10:01 pm

    Tax revenues are down substantially. Most businesses are not doing well, and we are looking easily at a 50 pct drop in government revenues. The oil palm sector isn’t doing well, the automobile sector isn’t doing well, and now we have evidence that the oil and gas sector is also not doing well. Who is going to finance all the infrastructure ? What is going to happen to our development corridors ? For Indonesians to live in perhaps ?

    Why do you think so many UMNOputras are moving their funds out of Bolehland to “safe” havens like London and Sydney ?

  9. #9 by AhPek on Monday, 14 December 2009 - 10:27 pm

    Is that why government is so intent to introduce GST in a move to make up???/
    Oil revenues dipped by 37.5%,oil palm is not doing well,electrical and electronic products
    are down in the doldrums and so what else can we export other than exporting maids which we should soon become one of the top exporters!!!

  10. #10 by Dap man on Monday, 14 December 2009 - 10:43 pm

    When was the Speaker ever neutral? He sits there to make sure the PM is not embarrassed by the Opposition Leader.

    If the government cannot get oil from the ground it can always squeeze some money from your pockets.

    That’s why the Inland Revenue guys have been walking into our offices to check on our files and collect additional taxes.

    That’s why the government plans to remove all subsidies and impose GST?

    That why the government is selling unit trust and pleading with the Chinese to buy them as the poor Malays have no more money left to invest while the rich Malays have parked their money elsewhere.

    That’s why Najib plans to sell bond in New York so that our children and their children will carry UMNO’s debts for the next 100 years.


  11. #11 by frankyapp on Monday, 14 December 2009 - 11:42 pm

    Hi dap man,if what you mentioned,indeed would carry out by the Umno/Bn regime,let it be because it will help DAP,PKR and PAS or PR job much much easier to win the next GE.Please don’t wake them up to urinate.

  12. #12 by gofortruth on Tuesday, 15 December 2009 - 1:51 am

    The BN gomen has to put Petronas under the “cover” of OSA so that they can literally help themselves to loot the nation with Billions & Billions. As a comparison PKFZ just pale in significance. Check the cost of operation & investigate what kind of astronomical claims they made.
    The people of Malaysia irrespective of Malays, Chinese, Indians and all other races have been fooled by the BN gomen for just too many years.
    We must vote in the opposition to have a chance to stop the leakage & clean up the mess.

  13. #13 by mrx on Tuesday, 15 December 2009 - 2:09 am

  14. #14 by ekompute on Tuesday, 15 December 2009 - 7:24 am

    “Wow,petronas pre-tax profit down from 63 billion to 31 billion and this would contribute a shortage of 57 billion in the 2010 budget and yet the idiot DP said it’s not qualified to debate. What kind of stupid idiot is this DP.” — Frankyapp

    He is not stupid laaa. He is merely following instructions. If this DPP gets robbed of RM1000, see if he makes a police report or not, or do you think he will say never mind laaa… after all, we all also rob what, but in different way.

  15. #15 by undertaker888 on Tuesday, 15 December 2009 - 9:27 am

    let’s see where the money go ….
    F1 team, istana, buy a few frogs. AG chambers, pdrm, macc, btn (brainwash those numbskulls)…etc need cash to ‘operate’ business as usual. Ahhh… The warlords need a sprinkle of few billions here and there.

    So all tally. No wrong done. All ok in the national front.

  16. #16 by OrangRojak on Tuesday, 15 December 2009 - 9:59 am

    So close!
    It’s a pity PR (even though they had much better attendance, by the looks of it) couldn’t have persuaded just a few more to attend.

  17. #17 by waterfrontcoolie on Wednesday, 16 December 2009 - 12:12 am

    Does anyone know how much money Petronas had earned since it started production? With its revenue, even if we have been 20% as efficient as the dot down south, we could have as much as their reserves??Like what Tengku Li said, it is a curse! because when it is exhausted, the country will have NOTHING to offer the politicians. By then, Malaysia could be leaderless!

  18. #18 by johnnypok on Wednesday, 16 December 2009 - 3:35 am

    If HP6 idiots know how to manage big business, pigs can fly and dogs can sing the national song/

  19. #19 by taiking on Wednesday, 16 December 2009 - 9:07 am

    Economy not quite generating wealth. And foreign money not coming – only illegal workers and worse, they take cintanegara’s rambutans out. So where on earth do we find money to fund our growth? Petroleum of course. And less petroleum profit means less rambutans for everyone. Shall we then also help ourselves to cintanegara’s rambutans just like those illegals who cintanegara’s beloved umno welcome with open arms and legs? Err well maybe not with open legs.

  20. #20 by waterfrontcoolie on Wednesday, 16 December 2009 - 11:50 pm

    Let’s see how Lau Lee did it. He started with income from PSA which as a Gomen corporation was not expected to pay tax. With those Billions, he started Temasek under which PSA International operated. In spite of the recent losses, Temasek still worth something! Over us$100 billion!
    On the other hand, LPK started with annual tax payments to the Gomen and it was told that when OC Phang took over, it had over 0.5 billion in the coffer, and this was turned into [-] rm$12 plus Billion!!
    THIS is the difference!!!

  21. #21 by Ramesh Laxman on Sunday, 20 December 2009 - 11:00 am

    This has been going on ever since 1985. At that time many government servants were coming late for work despite the clock in system.They got a friend to clock in for them. The head of department will send out a circular drawing attention to this trend. Then suddenly you will hear that a certain officer who will probably come from a minority class will be caught and given a warning lettter followed by no promotion for two years. The dance then moves on.

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