Policy & Regulation

Malaysia’s election marks setback for Petronas

The landmark result will raise challenges for Petronas and lead to more political risk for companies involved in the country The landmark result will raise challenges for Petronas and lead to more political risk for companies involved in the country.
By Andrew Walker 14 May 2018 0 30834
Malaysian Prime Minister Mahathir Mohamad (centre), (PA)

The surprise victory of Mahathir Mohamad and his Pakatan Harapan coalition in Malaysia’s elections could lead to a greater strain on Petronas’s finances and see the company loosen its grip on key producing regions.

The losing Barisan Nasional party had been in power since in 1957, meaning Pakatan Harapan will face a significant challenge to manage the transition of power and deliver on its policies. As the state oil and gas company, Petronas is a major source of revenue for the government, and it will undergo...