KUALA LUMPUR, Nov 6 — The government has succeeded in reducing its dependence on petroleum-related revenue to 16.9 per cent in 2025 compared to 28 per cent in 2022 through revenue measures implemented since 2023, said the Economy Ministry.
It said that petroleum-related revenue is projected to decline further to 12.5 per cent in 2026.
“Among the revenue-generating measures are the expansion of the scope and increase in the rate of sales and service taxes, as well as the implementation of the e-invoicing initiative,” the ministry said in a written reply posted on the Parliament website today.
To achieve the objective of reducing dependence on oil and gas revenue, the government continues to strengthen medium-term fiscal reforms through broadening the revenue base and improving public spending efficiency.
“Among the key measures are the implementation of a comprehensive e-invoicing system by 2026 to curb revenue leakages and enhance tax compliance, the introduction of the Capital Gains Tax on the disposal of unlisted shares to increase non-oil revenue, as well as targeted energy subsidy rationalisation using the Central Database Hub (Padu) to ensure assistance is channelled to eligible groups.
“This approach will create a more sustainable fiscal foundation,” it said.
The government remains committed to reducing its reliance on petroleum-related revenue due to the risks posed by fluctuations in global crude oil prices, which reached a record high of 41.3 per cent of total revenue in 2009.
During the 13th Malaysia Plan (13MP), 2026-2030, the government will focus on reducing its dependence on oil and gas revenue by diversifying the country’s income sources and generating new, more sustainable, resilient, and high-impact growth sources.
The ministry was responding to Bachok MP Mohd Syahir Che Sulaiman's query on the concrete strategies the government has to reduce its dependence on oil and gas revenue and generate new, more sustainable sources of growth during the 13MP period.
