Malaysia is pushing to fast-track its digitalization, tapping local service providers to build a national blockchain
infrastructure.
MIMOS Berhad, an agency under the Ministry of Science, Technology and Innovation (MOSTI), has partnered with local Web3 firm Masverse for the initiative, signing a Memorandum of Understanding (MoU) to advance the state of Web3 for the Southeast Asian nation.
A cursory look at the MoU reveals an intention to integrate Masverse’s MasChain, a layer 1 distributed ledger, as the foundation for the country’s Web3 objectives. Rather than focus on mainstream offerings, the ledgers appear tailored to the country’s peculiarities, keen on “efficiency, transparency, and accountability.”
MasChain, a homegrown solution, offers local enterprises the security and scalability perks required to power their growth ambitions. The report namechecks a slew of potential use cases, including applications in blockchain-based certification systems, supply chain traceability, and financial system applications.
MIMOS Berhad CEO Saat Shukri Embong disclosed that the arrangement underscores a commitment to revolutionize Malaysia’s digital economy in the face of seismic global changes.
“We are excited to partner with Masverse on this important initiative, which marks a significant milestone in strengthening Malaysia’s national blockchain ecosystem,” said Saat. “By exploring the potential of MasChain’s robust Layer 1 infrastructure, we can unlock new opportunities for businesses and public entities.”
Apart from pushing the integration of MasChain across local industries, the MoU will see parties carry out feasibility studies on novel applications with a national outlook. A section hints toward blockchain applications with a regional flavor, with the most obvious utility being applications for cross-border payments.
“Through this collaboration, we aim to unlock new opportunities for businesses and public sector entities nationwide,” said Masverse CEO Chew Kian Kok.
Refusing to play second fiddle to its regional peers, Malaysia is keen on jumpstarting a national blockchain adoption spree. Central to its plans is creating a robust legal framework for blockchain designed to guide the activities of service providers and consumers while providing a thriving environment for ecosystem growth.
A capital injection of $2.2 billion by tech giant Microsoft (NASDAQ: MSFT) in mid-2024 for Web3 infrastructure and talent upskilling is expected to complement the government’s efforts in the space. Besides Web3, Malaysia’s digitalization drive extends to artificial intelligence (AI), Internet of Things, and Big Data integrations.
Japan’s counterfeit woes
Elsewhere in Asia, Japanese cosmetics firms are turning to emerging technology to protect consumers from counterfeiting as the ecosystem undergoes a significant change.
According to a report, a surge in fake cosmetic products has rattled the industry and forced sector players to explore new measures to keep out bad actors. The rise of online shopping and social media marketing complicates the process for consumers of cosmetic products, given the absence of real-world evaluation.
To stifle the operation of counterfeiters, there appears to be a surge in the use of quick response (QR) codes and near-field communication (NFC) tags on cosmetic products. By scanning a QR code on products, online shoppers can verify the authenticity of the items and identify products that have been tampered with.
Other use cases for QR codes and NFC tags include supply chain transparency and enhanced consumer trust.
While the early applications for the duo have racked up impressive results, the report highlights the introduction of blockchain to accentuate consumer protection efforts. Blockchain’s immutability and transparency perks are an additional protection layer for millions of Japanese consumers.
By introducing elements of blockchain, brands can explore new avenues of consumer interaction powered by tokenization,
non-fungible tokens (NFTs), and smart contracts.
A study by Global Data confirmed a spike in the number of manufacturers turning to “anti-counterfeiting technologies” primarily driven by rising fakes and global operating standards. Despite the push, turning to emerging technology will not be a walk in the park, given the steep costs and scalability issues associated with it.
Using QR codes seems to be the easiest option, while NFTs and blockchain will need significant capital investment for integration into production.
“Scalability is challenging for smaller brands due to high costs and technical requirements for solutions like NFC or blockchain,” said Euromonitor analyst Aya Suzuki. “QR codes provide a more accessible alternative with similar functionalities.”
Given the steep requirements for anti-counterfeiting measures with emerging technologies, Suzuki argues that luxury products are more likely to deploy them. Smaller brands keen on employing the solutions are encouraged to explore NFTs, website verifications, and partnerships with technology service providers to save costs.
For Suzuki, the landscape will remain largely unchanged over three years as the niche grapples with sky-high costs and low consumer demands.
“Significant advancements in intelligent packaging are unlikely in the next three years,” added Suzuki. “It is likely to be limited to niche segments like premium beauty and luxury products.”
Japanese NFTs continue to record impressive new use cases, from gaming to maintaining deserted villages, and the cosmetic industry is keen to latch onto its searing pace.
Watch: Spotlight On—Countering counterfeits with blockchain technology
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