Malaysia plans to introduce distributed ledger technology (DLT) in three largest industries. The blockchain will be used in renewable energy, palm oil industry and Islamic finance. The government hopes to strengthen these sectors in particular and the entire economy of the country as a whole through the introduction of innovations.
The Malaysian Industry-Government Group for High Technology (MIGHT) will oversee the implementation of blockchain. It will guarantee that each industry receives its benefits from the use of technology.
Tenaga Nasional Berhad (TNB), a utility and energy supplier in Malaysia, plans to stimulate competition and accelerate introducing renewable energy sources. Blockchain will allow to bring another interesting innovation in this area. Private owners of solar panels can sell surplus electricity by entering data into a distributed ledger.
Certificates for agricultural products, in particular palm oil, will also be transferred into blockchain. This will ensure a more sustainable supply chain, as sellers and consumers track the source of palm oil and monitor transactions.
Sharia law enforces specific rules in the field of finance. In accordance to them, it is forbidden to collect interest and any debt must be supported by material goods. The technology of the distributed ledger will allow banks to comply with Islamic laws.
WHY IS IT IMPORTANT?
- According to the recruiting company Robert Walters, the number of vacancies in the crypto area has increased by about 50% in the middle of this year, compared with data for 2017. Malaysia is among the top five in this direction. On the other hand, rapidly developing economies of Asia need highly qualified experts who can introduce new technologies into operation.
- Malaysia pays a lot of attention to the DLT. This year NEM.io Foundation opened a blockchain center in the country. The company allocated $120,000 to develop projects based on DLT-technology. The NEM Malaysia Center will engage in promoting blockchain startups, as well as helping companies integrate distributed ledger technology into their projects.
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