Malaysia has officially launched the Malaysia Blockchain Infrastructure (MBI), a national platform developed collaboratively by MIMOS Berhad and digital services provider MyEG Services Berhad.

This initiative aims to bolster digital services and support the National Blockchain Roadmap, positioning Malaysia as a regional leader in blockchain adoption and development. The initiative will also underscore efforts by Malayasian banks to digitise letter of credit (L/C) processing.

Neutral and trusted foundation

The MBI is designed to provide a neutral and trusted foundation for blockchain-based services across both public and private sectors.

By integrating with other public blockchains like Ethereum and Solana, the MBI promises to simplify the development of blockchain applications in areas such as supply chain traceability, digital identity, asset tokenisation, and decentralised finance.

L/C implications

In 2018, HSBC completed Malaysia's first blockchain L/C for Simply Packaging, and for the L/C business, the MBI's launch holds significant implications.

Traditional L/C processes are often paper-intensive, time-consuming, and susceptible to fraud. By leveraging blockchain technology, the MBI can facilitate the digitisation of trade documents, enabling real-time verification and reducing the risk of document tampering. This transformation aims to lead to increased efficiency, transparency, and trust in L/C transactions.​

Interoperability

Moreover, the MBI's emphasis on interoperability means that L/C transactions can be seamlessly conducted across different blockchain platforms, accommodating various stakeholders in the trade finance ecosystem.

This capability is particularly beneficial for cross-border trade, where multiple parties and systems are involved.​

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.