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Federal Government dividend income rises 1.4% to RM39.55 billion

Malaysia's Federal Government received RM39.547 billion in investment dividends during 2025, with state-owned oil giant Petronas contributing the lion's share. The increase of 1.4% reflects steady returns from the government's strategic investment portfolio.

LSN Malaysia · 5 October 2026

The Federal Government's dividend income grew marginally to RM39.547 billion in 2025, representing a 1.4% increase from the previous year, according to the Auditor-General's report. Petronas, the national oil and gas corporation, remained the primary source of dividend payments to the federal coffers, underscoring the critical role of energy sector revenues in government finances.

The modest growth in overall dividend receipts reflects the performance of the government's various investment holdings across the nation's sovereign wealth portfolio. These dividends form an important component of non-tax revenue and contribute to the federal government's annual budget allocation.

The Auditor-General's findings highlight the government's dependence on returns from state-owned enterprises and strategic investments to support public spending and development initiatives. As Malaysia navigates economic conditions and commodity price fluctuations, the consistency of dividend payments from key holding companies like Petronas remains vital to fiscal planning and budgetary sustainability.