GOVT REDUCES DEPENDENCE ON PETROLEUM-RELATED REVENUE TO 16.9 PCT FROM 28 PCT IN 2022

KUALA LUMPUR, Nov 6 (Bernama) -- The government has succeeded in reducing its dependence on petroleum-related revenue to 16.9 per cent in 2025 compared to 28 per cent in 2022 through revenue measures implemented since 2023, according to the Ministry of Economy.

In a written reply posted on the Parliament website today, the ministry said that petroleum-related revenue is projected to decline further to 12.5 per cent in 2026.

“Among the revenue-generating measures are the expansion of the scope and increase in the rate of sales and service taxes, as well as the implementation of e-invoicing initiative,” it said.

The ministry said that to achieve the objective of reducing dependence on oil and gas revenue, the government continues to strengthen medium-term fiscal reforms through broadening the revenue base and improving public spending efficiency.  

“Among the key measures are the implementation of a comprehensive e-invoicing system by 2026 to curb revenue leakages and enhance tax compliance, the introduction to Capital Gains Tax on the disposal of unlisted shares to increase non-oil revenue, as well as targeted energy subsidy rationalisation using the PADU database to ensure assistance is channelled to eligible groups. 

“This approach will create a more sustainable fiscal foundation,” it said.

The government remains committed to reducing its reliance on petroleum-related revenue due to the risks posed by fluctuations in global crude oil prices, which reached a record high of 41.3 per cent of total revenue in 2009.

During the 13th Malaysia Plan (13MP), 2026–2030, the government will focus on efforts to reduce its dependence on oil and gas revenue by diversifying the country’s income sources as well as generating new, more sustainable, resilient, and high-impact growth sources. 

The Economy Ministry said this in response to a question from Mohd Syahir Che Sulaiman (PN-Bachok) who asked the Economy Minister to state the concrete strategies by the government to reduce its dependence on oil and gas revenue and generate new growth sources that are more sustainable during the 13MP period. 

-- BERNAMA