Malaysia’s top three industries are being propelled into blockchain adoption in an effort to promote economic growth alongside transparency, efficiency, and sustainability with the help of a government task force.
The sectors being targeted by the Malaysian Industry-Government Group for High Technology (MIGHT) task force include renewable energy, palm oil, and Islamic finance.
In the energy sector, the government task force has held discussions with local companies to investigate how blockchain can assist in the growth of renewable energy users. Blockchain was decided to be of use in this area by providing transparency over how the energy was generated, be it from sustainable sources or not, meaning that customers can choose to purchase only green energy if they wish to do so.
Palm oil has become a contentious commodity due to a lack of ethical labor practices in its production, including reports of child labor coming from several countries. With blockchain, MIGHT wants to give buyers the ability to see that the palm oil they are purchasing from Malaysia comes from a government-approved ethical production line, while also setting up the government infrastructure necessary to monitor production in the country. Australia has also used a similar blockchain strategy to monitor the origin of sugarcane entering the country.
Islamic banking in 2016 accounted for 28% of Malaysia’s financial sector, with the government hoping they can increase this to 40% by 2020. MIGHT believes that blockchain can be used to offset the high costs of the strict ethical regulations that Sharia laws require from financial and banking services. Similar operations have already begun appearing in the Middle East where banks have started pegging debt to gold units, presenting this as a blockchain smart contract.
Bitcoin News has previously reported on the compatibilities of cryptocurrency and Sharia-compliant financial practices, with the first Islamic law abiding crypto exchange launched earlier this month opening the market up for Muslims.
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