Can Petronas increase its dividend payout for economic relief?

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Petronas Could Increase Dividend Payout for Economic Relief

Datuk Seri Anwar Ibrahim has proposed that Putrajaya utilise the nation's reserves or increase contributions from Petroliam Nasional Bhd (Petronas) as an alternative to public withdrawals from Employees’ Provident Fund (EPF) savings for economic relief during the Covid-19 pandemic. This suggestion stems from concerns that EPF withdrawals could negatively impact the future financial security of lower-income earners.
Alternative Funding Sources Proposed

Anwar Ibrahim urged the government to tap into the country's substantial reserves or secure increased contributions from Petronas to support those financially affected by the pandemic. He specifically mentioned that the government's or Petronas' "huge reserves" could be utilised to aid citizens during this challenging period, rather than depleting individuals' long-term savings.
Historical Precedent for Increased Payouts

Analysts at Kenanga Research have previously indicated that Putrajaya might request Petronas to raise its dividend payout for the current year, in addition to the RM24 billion already committed. This is not without precedent, as the Pakatan Harapan government in 2018 requested a special dividend of RM30 billion from Petronas to address outstanding Goods and Services Tax refunds.
Concerns Over EPF Withdrawals

The PKR president expressed significant concern that allowing public access to EPF savings would jeopardise the future of those with lower incomes. He argued that while such withdrawals might not be as critical for higher earners, they could have a detrimental effect on the long-term financial well-being of less affluent contributors.
Proposed EPF Contribution and Withdrawal Scheme

As an alternative to direct EPF withdrawals, Anwar proposed a government-backed scheme. This would involve the government providing a minimum partial contribution of RM250, coupled with an option for contributors to withdraw a similar amount of RM250 from their EPF accounts if necessary.
Pakatan Harapan's Alternative Aid Suggestion

Prior to this, Pakatan Harapan (PH) had suggested a different approach to economic relief, proposing that Putrajaya disburse an additional RM1,000 in aid, distributed twice in March and April, to recipients of the Bantuan Sara Hidup (BSH) financial assistance. PH estimated this measure would cost Putrajaya RM8.2 billion but believed it would be a faster method to assist those most impacted by the movement control order compared to EPF withdrawals.

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Can Petronas increase its dividend payout for economic relief?

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