Blockchain embrace for Malaysia’s three biggest industries
With the increasing global embrace of Blockchain Technology, it seems Malaysia is following suit. The South-Asian country is looking to loop in their largest industries: renewable energy, palm oil & agriculture, and Islamic Finance into the blockchain.
The country-wide project will be conducted by a task-force called the Malaysian Industry-Government Group for High Technology (MIGHT) with the objective of increasing mobility, security and transparency of data, as per a report published last week.
Currently, Tenaga Nasional Berhad (TNB) is the sole electricity provider in Malaysia. The government is looking to increase competition and potentially spur the use of renewable energy by the introduction of the Blockchain. Since the technology operates on a transparent system, sellers would have to spell out the nature of electricity produced via the Distributed Ledger Technology (DLT). Households would be given the choice to buy renewable sources of energy through direct transactions on the blockchain.
TNB, the utility provider, had earlier mentioned that it was organizing workshops to increase awareness about Blockchain easing future adoption by business owners.
Palm Oil & Agriculture
The Palm Oil industry at present is tainted by the indiscriminate practice of using child labor for easy production. The introduction of Blockchain Technology will help customers identify the producers of palm oil that have adhered to industry ethics and labor laws prior to making a purchase.
Palm Oil sales contribute a whopping 43% to Malaysia’s agricultural revenue, further necessitating the Blockchain. The government can also use the system to monitor sustainable practices and enforce adequate regulations wherever possible.
The tenants of Islam, with respect to banking, forbids the collection of interest on a loan, hence the technology can be implemented here to adhere to Sharia. This industry accounts for 28% of the country’s financial sector and seeing a steep growth rate is looking to increase to 40% by 2020.
Since the religious system does not permit the collection of interest, Blockchain, especially its feature of immediate execution and enforcement of smart contracts, can be introduced here to mitigate these risks and will adhere to the principles of Islamic banking.
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