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Wednesday, June 9, 2010

Where Has All of Malaysia's Oil Money Gone To?

EDITOR’s NOTE: In conjunction Idris Jala’s recent announcement that Malaysia will be a Net Oil Importer by 2011, I decided to republish an article I wrote last year. Please remember that to date, the BN government has refused to present Petronas's a full account of Petronas's income and spending. To date, only a few privilage individuals has any idea as to exactly how much we have earned from our oil revenues and where it has gone. Enjoy.

Has anybody ever stopped to think and question this very important question? I wrote a Bahasa Malaysia version on this issue. And I received a comment in English that touches the heart and soul of this topic:

Anonymous said...
I am 40 years old now. I have NEVER EVER seen a single sen of Petronas's money for 40 years.

I believe as long as BN is still in power, I will NEVER EVER see a single sen of Petronas's money for the next 40 years.
January 18, 2010 10:40 AM

My whole Malay version of this article quoted an example of how Norway handled profits from their mining/oil industry. Allow me to quote:

The Government Pension Fund - Global (Norwegian: Statens pensjonsfond utland, SPU) is a fund into which the surplus wealth produced by Norwegian petroleum income is deposited. The fund changed name in January 2006 from its previous name The Petroleum Fund of Norway. The fund is commonly referred to as The Petroleum Fund (Norwegian: Oljefondet). As of the valuation in June 2007, it was the largest pension fund in Europe and the fourth largest in the world [1], although it is not actually a pension fund as it derives its financial backing from oil profits and not pension contributions. As of 30 September 2009 its total value is NOK 2.549 trillion ($455 billion)[2], holding 0.77 per cent of global equity markets.[3] With 1.25 per cent of European stocks,[4] it is said to be the largest stock owner in Europe.[5

Despite the influx of oil money, Norway has not reduced their taxes nor have they introduced subsidies or use the money for white-elephants projects. They have kept their oil profits for the future generations of Norwegians (be it the total population of Norway is not more than 5m lives).


From various reports (namely from Dr Mahathir himself in one of his articles), we can sum up the total contribution of Petronas to the government in these terms:

Tun Hussein Onn Period : RM 33 Billion
Dr Mahathir Period : RM 165 Billion
Pak Lah’s Period : RM 256 Billion

So an estimated total of RM 456 billion in terms of oil revenue has been received by the Malaysian government from Petronas since Petronas’s inception.

Now, the reason why the commenter above expresses his worry is that to date, the people of Malaysia do not have the faintest idea where the oil money has gone to.

I mean, if I were a Norwegian, and someone asks me where has Norway’s oil money gone to, I can easily answer the oil money is currently residing in Norway’s pension fund.

But, for a Malaysian, that is not an easy question to answer. As the comment I quoted above shows, we Malaysians has never really seen a single cent of Malaysia’s oil money.

In fact, we have to pay through our noses when we fill up our cars at Petronas’s petrol stations. I mean, for all the oil money Petronas makes, why couldn’t they at least keep the Petronas Station toilets clean. Is that too much to ask?

On top of that, when we use the highways, we are forced to pay tols and a whole lot of em’ too. We also have to pay road-tax and prices of daily necessities seems to increase every month.

Malaysians also have to pay for over-inflated car prices. I estimate Malaysians are forced to pay 3x the market rate for the cars they buy. In short, average Malaysians do not see the oil money that this country gets. Oil money is the domain of the UMNOPUTRAs and their cronies.


I also cited the Indonesian experience with oil money. During their OPEC heydays, Suharto+family and his cronies were enjoying life like no one knows. They were drowned in money.

A veteran Indonesian oil-worker I know told me that during the heydays, oil was found in INLAND INDONESIA. They do not have to explore oil offshore. They found oil within Indonesian land, thus making it much easier and cheaper to mine.

And all of the money was not spent where it counts i.e. infrastructure, facilities, savings etc. Suharto+family and his cornies robbed Indonesia’s oil money blind.

So during Indon’s heydays, we do not see many highways, bridges, roads etc. Most of the oil money goes to Suharto and his cronies pockets.

In order to keep the people subdued, Suharto subsidized everything i.e. gasoline, food etc. But, even with the subsidies, it didn’t account much to the total oil earning of Indonesia because back then food and gasoline was cheap.

Trouble really started when the oil money ran dry. The oil drills are digging out air instead of the normal black stuff. So, no more money for subsidies and no more money for their big pockets.

And sure enough 3 years later, Indonesians became more jobless and hungrier not to mention much poorer than before. The oil money had ran out and the country is in a deep hole that they can never climb out of.

In the aftermath of Suharto’s fall, there was massive starvation. People were living in abject hardship. The oil money that helped to keep people slightly above starvation is no more. So, naturally, 50% of the people went below starvation level.

Food became very expensive and their money became devalued so much. The result, close to 1 to 1.5 million girls/women in Indonesia had to turn to prostitution just to stay alive.

Suffice to say, Indonesia is a GREAT example of how the oil curse works.


UMNO and BN are no less of a thief then their Suharto counterpart. We Malaysians are also being robbed blind by UMNO.

The fact that UMNO having to remove subsidies, introducing the GST, raising taxes here and there shows that our oil money HAS RAN OUT.

Idris Jala himself warned us that by next year, Malaysia will be a net importer of oil. Which means there will be no more revenue from oil come next year.


When the music stops, 99% of Malaysians will find out that all of the oil money has never went their way at all. It went into the pockets of UMNOPUTRA and their cronies.

Now that the oil money is running dry, they want to cut subsidies and introduce various taxes namely GST. Why? So that UMNOPUTRA and their cronies will have a new source to rob from before the country checks herself into the bangkrupt motel.

So, what are we to do now? Our daughters will end up becoming prostitutes just to buy a kilo of rice in the future? God forbids.

No one can accuse me of exaggerating when the real life example is just across the Malacca Straits. Come over and you can witness for yourself. The “Curse of the Oil” in motion.

Norway is more Islamic than Malaysia when it comes to oil money. But will UMNO Mufti’s ever admit to that?

Tulang Besi

ps below is a quote from WIKIPEDIA on the Oil Money controversy in Malaysia. Happy reading

Oil Revenue Payments to Malaysian Government
On July 4, 2009 Petronas adviser Tun Dr Mahathir Mohamad asked what did the government spend with the RM253.6 billion payment from the national oil company over the past six years when his successor Tun Abdullah Ahmad Badawi was prime minister. He said that Petronas has been paying dividends, taxes, royalties and export duties to the government since 1976, after it was set up as the national custodian for fossil fuels. Petronas began by paying the government RM300 million in 1976, rising to RM2 billion in 1981, when Mahathir assumed office. The total from 1981 to 2003 was RM168.8 billion for the 22 years that marked Dr Mahathir's tenure as the country's fourth prime minister.[10]

Opposition leader Lim Kit Siang urged the Barisan Nasional government to open its books on Petronas and give a full accounting of how payments from the national oil company had been spent since its inception. Lim said that previously Mahathir did not raise any issues about the misuse of funds from Petronas, set up in 1976 as the national oil company, to bail out "dubious projects”.

He pointed to the infamous incident where RM2 billion was used to bailout Mahathir's son Mirzan Mahathir’s shipping concern Konsortium Perkapalan Bhd (KPB) in 1998 when KPB was floundering in billion-ringgit debts with its share price falling to RM3.78 by February 1998, a fraction of its pre-financial crisis level of over RM17.

He claimed that there were other occasions under Dr Mahathir when “Petronas was used as a national piggy bank” such as the RM2.5 billion and RM1 billion bail-outs of Bank Bumiputra in 1986 and 1989, aiding MAS and Proton in their financial struggles as well as to fund mega-projects such as the Petronas Twin Towers and the shifting of the federal administration to

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  1. APasai sponser dagu pariah panjang Michael Scumacher aah?Dengar kabar Petronas bayar gaji sama dia more than RM150 million per annum!!..ptuih!!Puak chootia khinzir lazy bums UMNO choots r addicted to petro money.,becos petro money simply flowed in with the help frm lil bit of engineering which umno khnzir choots langsung tak tau..petro money was umpama heaven sent for the lazy bums umno choots robbers dayus who spent 99% of thier workin time garu kotek,garu juboq,phak choo cheng,day dreaming of china doll,thinking of the next ferrari, n 1 % of the remainder time sending e mails "woi cek sudah mari kaah..batang dah restless ni"

  2. Kenapa TB bising pasal Petronas, tapi dalam bab Kohilal TB boleh pulak kata Kohilal tak perlu dedah butiran? Mungkin TB kata Ibrahim Ali bukan ahli. Tapi macam mana pulak dengan 20000 ahli lain?

    Inilah hipokrisi puak-puak TB. Bila tang orang lain, dia sibuk suruh orang dedah. Bila puak dia sendiri, kata tak perlu.

    Orang macam korang ni kalau bagi perintah negara lagi hancur. Selangor adalah contoh yang terbaik macam mana puak korang ni boleh hancurkan satu negeri dalam 2 tahun aje perintah.

  3. "Selangor adalah contoh yang terbaik macam mana puak korang ni boleh hancurkan satu negeri dalam 2 tahun aje perintah." Betul ke Grand Marquis? Saya seorang penghuni Negeri Selangor selama 50 tahun, 2 tahun yang lalu ini adalah paling best!.

  4. Petronas money is used for subsidies for you a me. About RM30bil a year goes to subsidies. The rest for the roads you drive on, schools your children go to, hospitals you treated at. This is the problem when you dont do your homework before writing this article.



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