The Malaysian government is moving forward with a plan to use Blockchain in three main industries by creating a task force to promote this technology’s uses.
The Malaysian Industry-Government Group For High Technology (MIGHT) task force has been created to actualize the government’s initiative with specific plans to integrate blockchain technology in agriculture, Islamic finance and renewable energy.
#1 – Agriculture
Accounting for 8.1% of Malaysia’s GDP, Agriculture is the country’s biggest export item. The integration of blockchain technology into agriculture will allow the country to provide food safety accountability and certify production. It will also allow the government to monitor environmental standards in areas where agriculture is produced and to recommend initiatives for producers to become more productive while being environmentally conscious.
#2 – Islamic Finance
Malaysia with a population 32 million has Islam as its major religion. However, Islamic finance accounts for only 28% of the Malaysian financial sector. Islam has specialized rules related to finance, including the forbidding of usury and Sharia law considers a system that borrowers have to bear the burden of risk and incur interest charges to be exploitative and wasteful and forbids the practice.
A Muslim law expert published a report in April and stated that Bitcoin is halal as long as it is used as a payment system and that Islamic law states that money must based upon real commodities. Blockchain, with its ability to prove ownership can be more acceptable than traditional banking. The Government expects that blockchain technology will allow Islamic Finance to grow in coming years.
#3 – Renewable Energy
As Malaysia embraces solar and renewable energy, the government believes that blockchain technology is a solution in the energy industry for individuals and companies who want to sell their spare solar energy into the national energy grid. One idea that is being discussed is to create a “token” that the government would issue for energy purchases and is a project that could be launched in 2020.
In May 2018 IBM launched a token called “Verde” to represent carbon credits on a global basis. The Malaysian government is studying whether a variation of Verde can used by individuals and companies and expects to make an announcement on the planned system in early 2019.