Malaysia is Embracing Blockchain Technology in its three Major Industries

The Malaysian government is planning to implement blockchain technology in the three largest industries of the country. Malaysian Industry-Government Group for High Technology (MIGHT), a task force will be spearheading the move to adopt the emerging blockchain technology in the renewable energy industry, palm oil industry, and Islamic finance industry. According to a report, the move of the Malaysian government will increase the transparency, logistical efficiencies, and sustainability. Three industries which will get benefited from the implementation of blockchain solutions are

Renewable Energy

The task force, MIGHT is holding talks with energy companies all over Malaysia to evaluate how they can use the blockchain technology to increase the renewable energy adoption. As the blockchain system has a transparent nature so sellers have to declare the exact process of electricity generation so that the buyers can scrutinize. With the help of blockchain system, buyers will be able to choose to buy renewable energy from energy companies or private owners of solar panels who have excess energy. The process of sending energy will become more efficient as the energy will be sent from the local power stations.

According to Tenaga Nasional Berhad’s (TNB) general manager of Innovation, the company has already conducted the research into the implementation of the blockchain technology and also holding workshops to identify the uses and adoption of the technology with business owners.

Palm Oil Industry

Palm oil is a controversial industry around the world because of the malpractices such as child labour. The adoption of blockchain technology will help to identify the palm oil companies which are certified and following ethical practices. With the help of blockchain system, the buyers will get to know about the source of palm oil before making the purchase. Palm oil is a major contributor to the GDP of Malaysia. The adoption of blockchain technology in the industry will help the government to identify and monitor the industry with sustainable practices.

Islamic Finance

Islamic banking follows strict ethical regulations which lead to higher overhead costs. The Malaysian government is finding the ways to reduce these costs with the help of blockchain technology. In Middle East banks have started to peg debts to units of gold and started to represent the debt as a smart contract on the blockchain.

Now it’s time to watch how the blockchain adoption will help the country to boost its industries.