Sep 16, 2013

How big will be a Malaysian citizen dividend?

This is a very quick estimate of the Malaysian citizen dividend if it becomes a citizen-ownership democracy.

This estimate is based on just one source: Petronas, "short for Petroliam Nasional Berhad, is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources."

Malaysia has a population of about 29 million.

"Including taxes, export duties and the dividend, Petronas estimates its total payments to the Malaysian government added up to 65.7 billion Malaysian ringgit ($21.10 billion) in that fiscal year." From Special Report: Petronas chafes at its role as Malaysia's piggy bank, Jun 2012.

From Petronas alone, the citizen wealth is at least RM 2,200 per citizen in 2011. The actual wealth from Petronas is more. For example, it is reported that dividends paid to the government is only 55% of net profit. 

A household of 4 persons would have a citizen income of RM 8,800. This is a lot of money. In comparison, the mean household income is about RM 4.025 a month in 2009.

The citizen dividend for Malaysia can be very substantial even considering just one source of wealth from Petronas. 

In comparison with this, BR1M (1Malaysia People’s Aid) does not look that generous anymore.

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