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New Malaysia DLT app helps users trace sustainable palm oil

The Malaysian Palm Oil Council (MPOC) and a blockchain startup have developed a blockchain app that enables users to trace palm oil throughout the entire supply chain.

Following a successful test, the blockchain-based system is available in a pilot to roll out to local oil palm growers, palm oil processors, plantations and family-owned smallholders.

The system registers each tree and its associated information, making it possible for users to track the journey from the plantation, to mill, and on to the final product.

The new app follows on from the implementation of the mandatory Malaysian Sustainable Palm Oil (MSPO) certification standard nationwide.

The CEO of MPOC stated that the launch of the app speaks volumes about the government’s trust in its supply chain. And it is yet another way Malaysia is showing the world that it values its people and the planet.

The aim is that by creating this platform and demonstrating the benefits of using blockchain technology, Malaysia will encourage others who are practising sustainable agriculture to follow its lead.

Working to eliminate deforestation

Sustainability within the oil palm industry is a big issue in Malaysia due to illegal logging and the replacement of forests with plantations.

According to environmental groups, one palm oil producer was responsible for the destruction of 730 ha of forest in the Malaysian state of Sarawak. The company is reportedly associated with a supplier of palm oil to major multinational manufacturers.

However, the government is fighting back. It has introduced more than 60 regulations and aims to improve forest management practices, as well as promoting various activities towards zero deforestation.

The industry argues that the total planted area of oil palms in the country is 5.74 million ha. This equates to just 0.11 per cent of global agricultural land but is responsible for 20% of global fats and oils exports.

Actively rolling out blockchain in Malaysia

This is not the first time Malaysia turned to blockchain tech in the food and agricultural products supply chain.

In 2019, the Malaysian state of Penang stated that it was considering using blockchain to trace the origins of products, which would also enable it to warn consumers about outbreaks of dangerous foodborne diseases.

The education sector has also embraced the tech with the Malaysian Ministry of Education introducing an application built on the NEM blockchain to deal with the issue of certificate fraud.

OpenGov Asia previously reported that degrees issued by local tertiary institutions are verified through the E-Skrol application-based blockchain technology.

Anyone, anywhere in the world can find out the data of a graduate of a Malaysian university, including his name, full transcript, graduation date and a class of degree through the application and scanning the QR code, Education Minister stated.

In his speech, the minister noted that the issue of fake degrees harmed the national higher education system.

The first batch of Malaysian graduates who will use the application where the October 2018 post-graduates of Universiti Islam Antarabangsa Malaysia pada Oktober 2018.

The application was later expanded to all public and private universities.

Malaysia has also launched a work visa program targeting tech freelancers that address a demand for blockchain capable talents.

Earlier this year, OpenGov Asia also reported that the public sector business solutions arm of a Malaysian telecommunications company recently announced that it has signed a Memorandum of Collaboration (MoC) with a Korean tech company.

The MoC will make the Malaysian enterprise the sole distributor of the FNSV Blockchain Secure Authentication (BSA) products and solutions for Malaysia and as the strategic partner for ASEAN.

The Korean company offers the world’s first patented solution based on blockchain technology that does not require a password for authentication, is simple to use, extremely secure. This almost impenetrable solution represents the next step in securing online businesses.

Through this MoC, the two parties will jointly collaborate on the tech and business development for BSA solutions based on G-CCS 1.0 for Malaysia, ASEAN and other potential markets on the web, mobile, IoT, 5G and any other medium authentication and certification services.

This collaboration is also expected to help other sectors address the changing cyber threat landscape and raise the resilience of national cybersecurity.


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