MYEG FORMS EXCLUSIVE JOINT VENTURE WITH BUBI TO SET-UP BLOCKCHAIN PLATFORM INFRASTRUCTURE
- COMPATIBILITY WITH CHINA’S NATIONAL BLOCKCHAIN ENABLES GLOBAL CROSS BORDER TRADE USE CASES
21 September 2021
Petaling Jaya, 21 September 2021 – MY E.G. Services Bhd (“MYEG” or “the Group”) announced today that it has entered into an equity joint venture with China’s Bubi Technologies Co., Ltd. (“Bubi”) to build supernodes around the world based on a blockchain system that will ensure data compatibility with China’s national blockchain infrastructure to enable introduction of game-changing applications, including in the area of global cross-border supply chain financing and traceability.
Through a Malaysian-incorporated joint venture (“the JV”) that will be 51% held by MYEG, the partners will set up supernodes outside China based on a high-performance and highly compatible blockchain system that is developed by Bubi and is being used by China’s recently launched national blockchain infrastructure. These supernodes will offer both a public blockchain network, which is one that is permissionless and open to anyone to participate, as well as a private blockchain network, where participation will be restricted to permissioned entities typically required for B2B use cases, with each network designed to serve distinct purposes. The partnership between MYEG and Bubi, which covers the development of supernodes outside of China including in Malaysia, Indonesia and the Philippines, among others, is exclusive for an initial 3-year period.
Beijing-based Bubi is one of China’s leading blockchain technology providers. Its blockchain platform boasts a developer network of more than 30,000 developers building a variety of decentralised applications. Bubi is actively involved in the ongoing development of China’s national blockchain infrastructure, deploying its widely-used protocol for the network, which has industrial sector applications as one of its main use scenarios.
The MYEG and Bubi JV’s blockchain supernodes will be fully compatible and interoperable with China’s national blockchain supernodes, enabling seamless integration and exchange of data blocks. The platform will, thus, lend itself well to the provision of solutions that have been long and much sought-after in global trade: end-to-end product traceability and financing along the entire supply chain, which, in this case, relates to the two-way flow of goods between China and the rest of the world.
This represents a particularly timely development in view of the impending commencement of the
Regional Comprehensive Economic Partnership (“RCEP”), a free-trade agreement comprising 15-member countries, including China, that collectively account for 30% of global output.
Verification of product origin and supply chain traceability are among RCEP’s key objectives.
Additionally, the JV’s private blockchain will be well-positioned to bring positive transformation to regional supply chain financing. Its application in product traceability and verifiability along with the immutability of records would beget greater levels of trust, accountability and transparency, in turn enabling faster, cheaper and more efficient supply chain financing.
Meanwhile, the JV’s public blockchain will offer a platform for developers globally to introduce decentralised applications that will use the ‘delegate proof of stake’ consensus mechanism, thus fostering vibrant innovation within the network even while ensuring lower energy consumption and higher transaction processing speeds compared with the most commonly-used existing public blockchains. The public blockchain project will entail the issuance of its own token, which will be used to pay for gas fees required to execute transactions on the network.
The roll-out of innovations on the blockchain platforms by the JV will be carried out progressively, with the maiden commercial applications targeted to be launched by year-end.
The partnership with Bubi marks the latest blockchain-related initiative by MYEG following the recent introduction of decentralised finance (“DeFi”) services that enable holders of cryptocurrencies to maximise the returns on their holdings.
Consistent with our continuous commitment to bring disruptive innovations to the market in advancing the countries’ digital agenda, MYEG expects to introduce more pioneering products and services based on blockchain technologies, in line with the Group’s belief that all types of assets will eventually be digitalized on a decentralised or multi-centered platform.
About MY E.G. Services Bhd (“MYEG”)
MYEG is Malaysia’s premier digital services company. Having commenced operations in 2000 as the flagship e-government services provider, MYEG continues to play a leading role in driving technological change in the region, bringing a diverse and complete range of innovations spanning the online delivery of major government services to a variety of commercial offerings in the areas of immigration, automotive, healthcare and financial services, among others.
Committed to staying firmly at the forefront of the region’s digital revolution, MYEG has embraced the potential of blockchain technology to enhance all aspects of life and is actively pioneering its adoption across its main markets. MYEG has operations in key regional markets such as the Philippines and Indonesia.