Blockchain is not ‘new’ by any means, however, it is still in the early stages as far as its application is concerned. International businesses have already started exploring blockchain solutions. Governments have also recognized the immense potential of blockchain. For instance, Dubai has come up the Emirates Blockchain Strategy 2021 and aspires to become the first blockchain-enabled government of the world. Another country taking key steps towards integrating blockchain into their major industries is Malaysia.
The 3 industries Malaysia is initially interested in applying blockchain solutions are Islamic Finance, renewable energy, and the palm oil industry. The project will be managed by MIGHT, the Malaysian Industry Government Group of High Technology.
Today, 28% of Malaysia financial sector relies on Islamic Banking and the percentage is expected to rise to 40% in the next two years. Islamic Banking works under Shariah rules which prohibit banks from collecting interest. Western banks, in contrast, do not rely on debts, backed by assets and prefer interest instead.
Bringing assets into the debt equation increases cost and make the processes more complicated. This is where blockchain will help by automating processes and slash costs. Since blockchain is tremendously secure it will also block the manipulation or meddling of any official documents.
Currently, Malaysia has a single utility provider. Blockchain will enable smaller vendors to compete with the existing larger ones. It will provide consumers with the data of the source of electricity so they can make decisions regarding if they want to purchase directly from the source. It will also aid private vendors in selling any electricity directly to the consumers. As a result, the energy waste and the cost of providing energy to consumers from longer distances will be minimized.
Palm Oil Industry
Palm Oil Industry accounts for 8.1% of Malaysia GDP and produces almost half of the country’s agricultural income. Introducing blockchain solutions for the Palm Oil industry will keep the government informed of the palm oil sources and help regulate the industry better. In addition to the efficient tracking of sources, monitoring transactions will become a lot easier thanks to the elimination of manual documentation.
In addition to major businesses and governments, small and mid-sized business owners in Malaysia are also warming up to the idea of injecting blockchain into their business models. Platforms such as the DDK Community are playing a notable role in informing and facilitating business owners implementing blockchain solutions in their business. The DDK Forum keeps stakeholders informed and encourages contributions from the members. Members who contribute receive incentives in the form of staking rewards, airdrop rewards and more.