(Rejected) Malaysia to Integrate Blockchain Technology for its Palm Oil Industry
Malaysia is set to integrate blockchain technology for its major palm oil industry, which accounts for over 30 percent of the nation’s GDP. If launched, the country will be one of the major eastern economies utilizing the technology for an official cause.
Malaysia’s Blockchain Push
The Malaysian Palm Oil Council (MPOC) will work with local firm BloomBloc, which provides blockchain-focused services in emerging markets, towards the initiative.
Malaysia is said to choose a blockchain-based framework to bolster transparency and ensure end-to-end traceability. The country is the world’s second-largest largest palm oil exporter after Indonesia and sells billions of dollars worth of palm oil each year.
Another aspect is to increase consumer confidence and trust in Malaysian palm produce which ensuring a sustainable, “eco-friendly” method of managing the overall supply chain.
As quoted by BTC Manager, MPOC CEO Dr.Kalyana Sundram told local press:
“MPOC chose to work with BloomBloc specifically because of its experience in creating real-time traceable, transparent supply chains with respect to sustainable agriculture.”
Sundaram added the project will further analyze crucial data related to the production and transport process, while additionally tracking optimum working conditions and plantation management.
The post further mentioned a jointly-developed blockchain app and web interface will be provided, mainly to provide transparent third-party verification of a “comprehensive list of variables” pertaining to the palm oil industry.
Interestingly, a pilot application has already been tested with positive results. All aspects of supply, starting from the individual palm tree, to production, to transport, and finally to deliver were tracked and analyzed.
Why Blockchain?
With several governments and companies globally assessing the need for blockchain technology in their respective areas, Malaysia’s initiative comes after the country facing several challenges threatening its industry in recent times. Last year, the European Union (EU) showed regulatory opposition related to Malaysian palm oil which caused volatile swings in the latter’s prices and a loss in consumer confidence.
However, the effort won't be Malaysia's first in adopting a blockchain-based framework. Previously in 2019, HSBC Malaysia issued the country's first letter-of-credit on a distributed interface to positive responses, as reported by Blockchain.News. In another development, Maybank, a Malaysian bank, signed an MoU with the Cambodian government to facilitate cross border remittances via a blockchain platform.
With the successive pilot tests and rising institutional interest in blockchain technology, it remains to be seen how the blockchain pivot works out for the Malaysian government.
(Image courtesy of Nestle)