Malaysia has been highly regarded as a fossil fuel economy due to its large natural gas reserves and massive exports of this fuel to finance the country . As mentioned, the oil and gas industry contributes around a fifth of Malaysia's GDP and accounts for 76% of the energy sector, as Malaysia ranks third among liquefied gas exporters, exporting almost 10% of the supply worldwide (in 2017). Therefore, it is evident that Malaysia depends on oil and gas activities as an important source of revenue, and this revenue is expected to increase due to its current financial situation. PETRONAS is reported to have contributed around $200 billion over the past four decades. This can be seen in Figure 2 where Malaysia is the second largest oil exporter in Southeast Asia, making it the dominant country in LNG trade in this region, with the exception of Indonesia. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayFrom a green economy perspective, this is dangerous because Malaysia relies heavily on the export of a resource that the supply is ultimately limited. Additionally, this fuel abundance in Malaysia has externalities, including encouraging high use of fossil fuels in the transportation sector. In addition to indirectly leading to an increase in CO2 emissions, this trade also damages aquatic ecosystems due to oil spills. Between 1976 and 1997 alone, 55,000 tonnes of oil were spilled into Malaysian seas. Not only is it physically and economically difficult to clean up, but PAHs can lead to developmental problems and increased vulnerability to wildlife disease. However, the level of oil-related activity in Malaysia is expected to decline. The gradual collapse of Malaysia's oil and gas industry could encourage the development of alternatives to energy use. Starting in 2018, PETRONAS' revenues are expected to decline due to the downward trend in oil prices since June 2014. PETRONAS is expected to produce 100,000 barrels less over the next five years, predicted by crude oil prices ranging from 50 to 60 dollars per barrel. As the amount of oil collected decreases, costs are increasing due to overcapacity “of assets such as manufacturers and maritime support vessels.” "As a result, PETRONAS's capital expenditure fell by 30%. This therefore provides an incentive for Malaysia to push development towards options such as forms of renewable energy in the long term, a step towards a sustainable economy. This is due to the direct effect of oil price volatility on the Malaysian ringgit, if falling, its contribution to GDP would weaken the Malaysian economy to the point of causing a “sustained devaluation” of its currency. : this is just a sample Get a personalized article now from our expert editors Get Even as the government currently needs to increase its dependence on oil revenues, dissociate itself from the pressure of oil prices on the. The Malaysian economy will be pragmatic for long-term stability which could lead to the maximization of Malaysia's renewable energy potential and a significant reduction in environmental costs associated with oil-related activities;.