Finance minister Tengku Zafrul Aziz has been working on a proposal to provide the company with an “assistance package” and a grant, according to the Edge Weekly newspaper, which cited unnamed sources.

The report said another option being floated was for Permodalan Nasional Berhad (PNB) to pump more money into SEB but the report said this might face investor backlash as PNB unit holders have yet to earn any dividend from the 2019 investment in the firm.

PNB had pumped RM2.7 billion into SEB but lost 90% of its investment as the company’s share price plummeted, the report read.

SEB is currently undergoing a debt restructuring plan involving banks, vendors, and contractors.

Last week, economic affairs minister Mustapa Mohamed said the government must remain cautious about its financial performance before asking Petronas to take over SEB.

Former prime minister Najib Razak has recommended a takeover of SEB by Petronas. He said recently in a debate with Anwar Ibrahim that SEB needs to be saved from bankruptcy as thousands of people would suffer and lose their jobs if SEB collapses.

He said Petronas should acquire a substantial stake in the company or alternatively banks could provide the company with loans backed by government guarantees.

However, Anwar said SEB’s finances should be sorted out first; he called for a forensic audit of the company, stating that a Petronas takeover would cost billions of ringgit.