Petronas rejects DAP's proposal that it funds second Penang bridge

KUALA LUMPUR, Wed: 

Petronas does not fund infrastructure projects, its corporate planning/development division vice-president Datuk Nasarudin Md Idris said. He was responding to Penang Chief Minister Lim Guan Eng’s proposal that Petronas fund the second Penang Bridge project, valued at over RM2 billion.

"Petronas only contributes to the government’s coffers in form of dividends. It’s up to the government on how it will be used,” Nasarudin said at the Invest Malaysia 2008 Conference here yesterday.

Nasarudin added that the company, over the past 30 years, has contributed to the government more than RM330 billion in the form of taxes, dividends, export duties and royalties.

“We finance infrastructure as far as oil and gas projects are concerned, like Kertih, whereby we created petrochemicals complex but we don’t finance buildings and bridges,” he added.

During his presentation entitled “Living with a US$100 oil”, Nasarudin said Malaysia should gradually move into a market-based fuel price mechanism, so that it can withstand future challenges.
The Government is expected to fork out RM35 billion on fuel subsidies this year, if crude oil prices remain at US$100 a barrel.

“We need a timeframe for market-based fuel price to set it. Otherwise, we are just postponing the day of reckoning,” he said.

He also proposed a few measures to cushion the impact of market-based fuel price mechanism, where consumers will buy petrol at the non-subsidised market price.

For instance, higher fuel price could be traded off with the reduction of excise duty on motor vehicles and some financial relief for the lower-income group.

-NST