KUALA LUMPUR: The government’s income in the form of dividends and taxes from petroleum companies in 2010 may decline if the crude oil price in the global market were to stay in the range of US$70 (US$1=RM3.53) per barrel level in 2009.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said for 2009, it would remain good as the petroleum companies would pay the taxes based on their 2008 incomes, where on average the crude oil price remained at a reasonably high level.

“However, in 2010 it could become an issue if the crude oil price in 2009 were to stay at US$70 per barrel level as the companies will pay taxes and dividends based on a lower crude oil price,” he told reporters after launching Amanah Ikhtiar Malaysia Puchong branch’s urban area micro financing programme here yesterday.

Hence, he said, the government has to make sure there were other revenue sources but declined to reveal the other sources of income being looked into.

State oil company, Petroliam Nasional Bhd, paid the government a special dividend of RM6 billion for the year ended March 31, 2008, bringing its total dividend for the period to RM30 billion from RM20 billion a year earlier.

On foreign workers remitting RM9.12 billion to their families back home in the first half of the year, he said even though the quantum looked big, they only amounted to only 4.7 per cent of the nation’s reserves.

“We also have to consider their contributions to the country’s progress, especially via the manufacturing and plantation sectors,” he said.

He said in the long run the government would have to take measures to reduce the country’s dependency on foreign workers.

— Bernama