Malaysia Will Use Blockchain Technology in Three Major Industries

The Malaysian government is exploring the application of blockchain in the three major industries, including renewable energy, palm oil and Islamic finance.

 

A report released last week showed that a working group called the Malaysian High-Tech Industrial Government Group (MIGHT) will take the lead in adopting a blockchain in each industry to improve transparency, sustainability and logistics efficiency.

 

Renewable Energy

MIGHT negotiated with energy companies in Malaysia to assess how they use blockchain to increase the adoption of renewable energy. When sellers put energy on the blockchain, such as ripple blockchain or xem nem blockchain,the transparency of the system means that they must specify exactly how electricity is generated for the buyer to check carefully. Through the adoption of blockchains, buyers can now choose to buy only green or renewable energy, or choose to buy from energy companies or private owners of solar panels with excess energy. This process is often far more than non-revolutionary. Local power stations are more efficient for long distance transportation.

 

Tenaga Nasional Berhad (TNB), Malaysia’s only utility supplier, has studied blockchain solutions, and the general manager of Innovations said that the company has been holding seminars to identify relevant use cases and discuss the adoption of business owners.

 

Palm oil

Palm oil is currently a controversial product, and many manufacturers around the world have reported on the use of bad practices and child labor. Blockchain adoption can help identify certified palm oil production operations and allow buyers to determine the source of their palm oil before purchasing.

 

About 8% of Malaysia’s GDP comes from agriculture, and 43% of its revenue comes from palm oil sales, making it the main area of blockchain adoption. In addition to benefiting buyers, the adoption of blockchain will also help the government identify and monitor the palm oil business through sustainable practices and regulate accordingly.

 

Islamic finance

It is reported by CCN that Islam prohibits the collection of interest on loans. The principle is that money must be based on actual commodities and cannot simply be generated from money. Debt creation must be supported by something like gold, a common practice for some Western Reserve Banks and the chief culprit of the 2008 world financial recession.

 

The strict ethics of the Islamic banking industry has created higher indirect costs in the industry, and Malaysia is studying how the blockchain can help offset these costs while maintaining Shariah-compliant practices. Banks in the Middle East have begun to link debt to gold units and treat debt as a smart contract for blockchain.

 

The cryptocurrency companies in Dubai and Malaysia also linked gold coins to cryptocurrencies alike monero coin and ada coin to allow debt creation to comply with Islamic law.