Petronas: To float or not to float?

Petronas’s financial success makes it a target for a government desperate for new revenue streams

Despite posting some impressive earnings, Malaysia's state-owned oil company Petronas could be forgiven for taking a few anxious looks over its shoulder. Four months on from the country's shock election result, which turfed out prime minister Najib Razak and returned the veteran former premier Mahathir Mohamad to power, the cash-strapped government needs to secure new revenue streams. Petronas could be primed as a sacrificial lamb, with an initial public offering of 25% of its equity a possibility. The idea emerged within weeks of the Pakatan Harapan government coming to power on a mandate to root out corruption. Ministers were reported to be mooting a float for Petronas, Malaysia's only For