We are creating some awesome events for you. Kindly bear with us.

Tech to Upgrade Financial Instruments in Malaysia

Blockchain Technology Use in Malaysia

Blockchain technology has been around for over ten years. However, business leaders across the world still struggle to understand it.

As a result, the seemingly limitless potential of the technology has yet to manifest in the varied applications suggested by experts.

In the banking and financial services industry, however, despite the slow progress, organizations seem to be making headway with bold pilot projects and trials – most of which lie firmly within the trade finance space and indicate that the niche segment is on the verge of a blockchain-powered revolution.

Most recently, the Malaysian branch of a British multinational investment bank and financial services holding company announced the first-ever live pilot blockchain letter of credit (LC) transaction in Malaysia.

The transaction involved the import of a resin made by Malaysian firm via a Singaporean company, both active players in the packaging and chemicals industry respectively.

For the purposes of this transaction, the bank was the issuing bank and its Singaporean counterpart was the advising/nominated bank.

The bank also believes that the use of trade finance solutions like blockchain will help to increase the velocity of trade.

This is especially true in situations where shipping routes are short, like the cross-border trade between Malaysia and Singapore where the physical transfer of goods takes a relatively short time – usually less than 48 hours – and the administrative paperwork often delays their delivery.

The process of exchange and checking of documents typically takes five to 10 days. However, through the bank, the firm that created the resin was able to complete the transfer in 24 hours, which not only speeds up trade velocity but also helps reduce transaction times and brings in working capital efficiency.

The bank, with several clients in the SME and enterprise space in the country, believes that the successful execution of the transaction marks a significant step towards the digitization of trade.

The CEO of the Malaysian branch of the bank noted that this will be Malaysia’s first pilot blockchain LC transaction.

It showcases the bank’s strong commitment and ability to support cross-border trade by Malaysian businesses using cutting-edge technology platforms.

It’s important to note that blockchain-based LC and other trade finance solutions — which HSBC has been piloting over the past year or two — are not only suitable for large enterprises but also for SMEs.

The aim is to better support Malaysian customers, particularly the SMEs who make up 98.5 per cent of business establishments in Malaysia and contributed 38.3 per cent to the nation’s GDP last year, through this innovative digital solution in trade finance.

While the trail has been successful, there is no indication that blockchains will become the de-facto technology used for trade finance or even letter of credit transactions in the future, in Malaysia or anywhere else just yet.

The trade finance niche, however, is definitely making better progress that other sectors and industries when it comes to adopting blockchain technology — and there’s hope that, with support from regulators, the technology will become commonplace in the near future, especially because of the efficiency and savings it promises.


CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.


Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.


SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.


HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 


IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

Send this to a friend