It seems like Malaysia is taking the most out of blockchain technology mostly for its palm oil industry.
The Asian country has been utilizing blockchain technology for its Renewable Energy, Islamic Banking Sector, and Palm Oil Industry. From Feb. 27 to 28, Kuala Lumpur will host the World Blockchain Summit with an objective to bridge solution providers interacting with ledger-based service to the local traffic. This is to help Malaysia to transpire an accomplishment road map to take advantage of blockchain as a solution to the issues.
Over the last decade, there has been a huge demand for palm oil and blockchain prompted enough attention and new enterprises towards the line of businesses. Currently, Malaysia contributes 39% of the world’s palm oil production and 44% accounts for world export. Since palm oil is the major earner of the country, it is expected that the palm oil industry will flourish in the next century.
According to official data, palm oil has been Malaysia’s largest business in terms of export which is almost half of the nation’s agricultural income. Its production became a marketable way to fulfill global consumption not only for vegetable oils but also for a daily household product since there is a huge supply.
The palm oil industry has been Malaysia’s biggest export career contributing almost half of it. That is why the government stressed out rehabilitation in the management of the high revenue earning industry through the integration of blockchain technology because it assists in the country’s expansion of economic condition while making it perform more transparently and commit to environmental survivability.
It is the Malaysian Industry-Government Group for High Technology (MIGHT) that initiated the integration of blockchain technology with the palm oil industry since the massive input is reliable to generate huge revenues. Government and legal committees alike can utilize the data to monitor the sources and regulate the industry for a more ecological approach.
Palm oil industry leaders recently organized a group called Sustainability Assurance & Innovation Alliance (SUSTAIN). It aims to develop a blockchain-based palm oil platform to deal with landscape-level sustainability concerns. It would also adhere to the objectives associated with No Deforestation, No Peat, No Exploitation (NDPE) which is environment-friendly.
The fusion of blockchain and palm oil industry is helpful in terms of the geographical location of the harvested fruit branches. Likewise, it could also become a substantial support structure that would get the kept data linked to the palm oil workers personalities and harvesting stages.
Moreover, it will feed the government agencies with better insights about the workers’ employment status and help legislators’ acquisition and access more details about the farming procedures.
Meanwhile, Malaysia reported a drop of 6.7% to three million tons for last month. It would be the country’s first fall in inventory in the past seven months. According to the Malaysian Industrial Development Finance Bhd (MIDF), both fructification and demand for export have been higher than anticipated. The increase in exports was chiefly due to the rise in demand from the European Union (EU), China, and India.
The overproduction of Malaysian palm oil, EU’s adverse opinions, and competition from other oil companies caused the prices of crude palm oil (CPO) to nosedive. The palm oil industry remains to deal with intense disapproval from environmentally sensitive countries, specifically EU which happened to be the second biggest export destination for Malaysian palm oil. Both Norwegian and the French governments have issued an amemdment to ban palm oil as biodiesel feedstock that will start in 2020.