The Malaysian government has seen the need to integrate blockchain technology into its top three industries. This is in its efforts to enhance the growth of the country economically and also ensure a transparent and efficient system of operations across these sectors. This initiative by the Malaysian government is spearheaded by the Malaysian Industry-Government Group for High Technology (MIGHT) task force. The targeted sectors by this task force are; palm oil, renewable energy, and Islamic finance.
What the (MIGHT) Task Force Plans to Achieve with Each Sector
The task force has made it known that it will be using a unique approach for each sector due to their wide differences.
Plans for the Renewable Energy Sector
The approach for the renewable energy sector, for example, will involve meeting with local stakeholders and hold discussions on how blockchain technology can be applied to help increase the growth of the sector and its users. The advent of blockchain technology in the energy sector will help confer transparency over how renewable energy is being generated. This way it will become very clear if the energy generated is truly renewable or is wrongly labeled. This way, customers will be sure of what they are paying for.
Plans for the Palm Oil Sector
The integration of the blockchain technology into the Palm oil sector, on the other hand, will help to clarify that Malaysian palm oil is from a government-approved ethical production line and no child labor was employed in the production of the oil. This is expected to further attract foreign investors to the Palm oil sector and also increase the stakes of the government in the world palm oil industry.
Plans for the Islamic Banking Sector
A report from 2016 has shown that Islamic banking accounts for 28% of Malaysia financial sector. The Malaysian government is looking to increase this percentage to about 40% by the year 2020.
This is why the government believes the integration of blockchain technology into this sector will help to reduce costs of the strict ethical regulations that Sharia laws require from financial and banking services.