In world first, Penang to adopt blockchain tech in halal industry

Looi Sue-Chern

Chief Minister Chow Kon Yeow speaking at the 10th Penang International Halal Expo and Conference in George Town today. The state's move to adopt blockchain technology in its halal industry will boost transparency and efficiency in the supply chain. – The Malaysian Insight pic by David ST Loh, March 1, 2019.

PENANG will adopt blockchain technology in its growing halal industry to ensure better transparency and efficiency in the supply chain.

This makes the state the first to use the technology in the industry, said Confexhub CEO Paul Yeo.

“In the halal industry, you want to know whether the product is truly halal, and whether the halal certificate is genuine,” he said at a press conference on the 10th Penang International Halal Expo and Conference (PIHEC), co-organised by Confexhub.

“Blockchain has features like transparency and efficiency, which are required in the supply chain. It can help us track products in the entire supply chain system – from farm to fork, and even to waste.

“Penang is the first in Malaysia, and the world, to embark on building a blockchain ecosystem for the halal industry.”

In conjunction with PIHEC, which starts today and runs till Sunday, Penang is hosting the inaugural Global Blockchained Halal Industry Forum at the SPICE Convention Centre today.

Blockchain technology can be used to register products, tracking where they are from and where they go before getting to end users. The products can be traced using QR codes.

State Domestic Trade, International Industry, Entrepreneur Development and Consumer Affairs Committee chairman Abdul Halim Hussain said Penang’s initiative to adopt blockchain technology is part of the state’s digital transformation plan.

Deputy Agriculture and Agro-based Industry Minister Sim Tze Tzin, who was present, said the technology is important in the agri-food industry, and will promote greater consumer awareness about food safety.

“It will allow us to trace every step – where the food we eat comes from, which farm, which processing factory, and which market or hypermarket sells them, or which restaurant or chef made the food.

“The technology will be very useful in the event of a disease. It can tell us where (the disease) originated from, so we’ll know which farm to go to, to cull the affected livestock.” – March 1, 2019.

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  • And so the costs will go up along the value chain before any product hits the consumer. In other words , Halalisation is becoming more costly , as to be unaffordable - to every player along the value as certification is a cost element , and eventually paid by the consumer. This is one way how regulators complicates life for a Muslim - who can only consume products manufactured by the ' already wealthy '. Hopefully the Warongs will not be coerced into this scam ( riding on religious belief ) - but one never knows.

    Posted 5 years ago by [email protected] · Reply

    • If you read more about blockchain, you will know that you are wrong. Blockchain a.k.a ledger tracks all transaction digitaly, securely and is permanent. It eliminates ". This is not cryptocurrency.

      Posted 5 years ago by Faizul M · Reply

    • It eliminates "shady middleman" that tends to find ways to manipulate or abuse the whole system. This is not crypotcurrency like Bitcoin and the like.. What they are talking about is Blockchain. The technology that businesses nowadays ought to look into in order to simplify processes.. Cyrptocurrency like Bitcoin is using Blockchain as an example. Why some peope say it is a scam?

      Posted 5 years ago by Faizul M · Reply

    • Why some people say bitcoin or other cryptocurrency is a scam? Simple. It is when you purchase those cryptocurrencies with your hard earned money, only then you'll know that it is a scam. So my advise to all is to stay away from Cryptocurrency but open your mind and give a thought about the bright future of Blockchain applications.

      Posted 5 years ago by Faizul M · Reply