Multinational Corporation (MNC) as foreign policy actor: a case study on Petroliam Nasional Berhad (PETRONAS) / Ahmad Shafez Adil

Petroliam Nasional Berhad (PETRONAS) is a Malaysia’s leading oil and gas multinational company. From the establishment of the company on August 17th, 1974 until recent year, its contribution in term of dividends, royalties, and export duties are getting increased. This study is to identify the role of Multinational Corporation (MNC), in this case PETRONAS in international arena in term of economic and politics. Do they practice the foreign policy that formulated by the government of Malaysia.

The study are comparing with the ideology that Uhlin identifies which is Liberal theory, Mercantilist theory and Imperialism theory. From the theories, there are some theories in the three theories that practice by the government as well as PETRONAS. This is because; government of Malaysia is practicing “Mixed Economy”. Mixed economy is an economic system that includes a variety of public and government control, or a mixture of capitalism (Liberalism) and socialism. Malaysia has diplomacies relationships with other government around the world. There are approximately more than 40 countries around the world. As a result, PETRONAS has operated more than 32 countries that all of the countries have good diplomacies relationships with the government of Malaysia. PETRONAS have brought the name of Malaysia around the world.

In this study found that PETRONAS practice the foreign policy that formulate by the government of Malaysia. PETRONAS should maintain the policy. Furthermore, PETRONAS need to be alert by the out side threat such as political changes, economic downturn, socioculture changes, technological changes and the existing or a new competitors that might threat them. For example, political changes usually lead to changes in government rules and policies such as ownership control and fund transfer restrictions.