Malaysia Incentivizes Its Palm Oil Industry with Blockchain-Tribeni Das
Malaysia has been using Blockchain Technology in three of the country’s largest industries today, namely Renewable Energy, Palm Oil Industry, and the Islamic Banking Sector. Palm oil has been in growing demand for over the last decade has driven a lot more attention and new ventures towards the industry. Malaysia currently accounts for 39 % of world palm oil production and 44% of world exports. If taken into account of other oils & fats produced in the country. As palm oil is the key income earner, this industry is set to thrive for the next 100 years. Production of palm oil has become a popular way to meet global consumption for not only vegetable oils but as an everyday household commodity since the yield per hectare ratio is very high. Palm oil is the biggest export business of Malaysia, accounting for nearly half, which is 43%, of the country’s agricultural income, according to official figures. Agriculture, just alone, contributes to 8.1% of the country’s GDP. Hence the government brought out reforms in the structuring of this high revenue earning industry by integrating Blockchain Technology as it will help boost the economic situation of the country and make its functioning more transparent and contribute to environmental sustainability. The Malaysian Industry-Government Group for High Technology, known as MIGHT, led an initiative to combine Blockchain Technology with the Palm Oil Industry for greater profits as there is a heavy reliance on the agricultural input.
- This will allow for a more sustainable supply chain network, as sellers and customers are now able to track the source of palm oil and monitor their transactions.
- Government and legal committees can also use the data to track the sources and modulate the industry for a more sustainable approach.