MyEG Services Bhd has entered into a strategic partnership with the Federation of Malaysian Freight Forwarders (FMFF) to promote ZTrade, a blockchain-driven trade documentation system, as Malaysia’s National Single Window (NSW) for cross-border trade. This collaboration marks a significant step toward enhancing the country’s trade facilitation using advanced Web3 technologies.
FMFF, a national association recognized by the Ministry of Transport, plays a crucial role in representing Malaysia’s logistics sector. With a membership base of over 1,500 companies, the federation’s influence spans the entire nation. By aligning with FMFF, MyEG aims to leverage this broad reach to promote ZTrade as the go-to platform for both domestic and international trade operations.
This move follows a recent high-profile collaboration between MyEG and East Logistics Link Co Ltd (ELLC), a subsidiary of China’s General Administration of Customs (GACC). The two entities are working together to develop and implement a seamless NSW framework, with the goal of improving cross-border trade across the ASEAN region.
A Three-Year Partnership to Advance Trade Technology
In an announcement to Bursa Malaysia, MyEG revealed the signing of a three-year Memorandum of Understanding (MOU) with FMFF. Under the terms of the agreement, both parties will collaborate to position ZTrade as the leading NSW solution in Malaysia. This initiative will encompass outreach to businesses, government agencies, and other stakeholders involved in trade, alongside efforts to provide training, support, and technical guidance to FMFF members. Marketing the benefits of ZTrade to the logistics industry will also be a key focus of the partnership.
ZTrade, developed on MyEG’s Zetrix blockchain platform, aims to revolutionize the handling of trade documents by providing near real-time access to certificates and other important data. This will enable faster tariff calculations and more efficient customs clearance processes, helping to streamline trade activities. By utilizing blockchain technology, ZTrade offers an innovative solution that ensures data security, transparency, and efficiency in trade document management.
This partnership arrives on the heels of an official notification in June, where MyEG received approval from ELLC to deploy ZTrade’s connectivity for cross-border trade facilitation. This step aligns with a joint statement issued by Malaysia’s Ministry of Finance and the GACC, outlining a shared commitment to enhancing bilateral trade through technology-driven solutions.
Strategic Positioning in Cross-Border Trade
At the MOU signing ceremony, MyEG’s Group Managing Director, TS Wong, emphasized the importance of this partnership with FMFF, viewing it as a strategic move to solidify Malaysia’s position in the international trade landscape. Wong acknowledged that their exclusive partnership with GACC, through ELLC, placed them at a significant advantage, combining world-class technological expertise with a deep understanding of the operational realities required to successfully implement a National Single Window.
He also highlighted the pivotal role of FMFF in helping to tailor the ZTrade platform to the specific needs of Malaysian businesses. According to Wong, the engagement package that MyEG offers, which incorporates proven technologies and best practices from around the globe, is unmatched in the local market.
Support from Malaysian and Chinese Governments
The MOU signing was witnessed by Tengku Datuk Seri Zafrul Abdul Aziz, Malaysia’s Minister of Investment, Trade, and Industry, who expressed optimism about the NSW initiative. Zafrul stated that the partnership between MyEG, FMFF, and China’s customs administration demonstrated a shared commitment between the Malaysian and Chinese governments to modernize trade operations through technology.
He expressed confidence that Malaysia’s NSW, which would integrate seamlessly with China’s customs system, would make trade more efficient by cutting down on bureaucratic delays and simplifying processes. This, in turn, would promote stronger business and trade ties between Malaysia and China.
Zafrul also mentioned that the next focus for the Malaysian government would be expanding the NSW system to align with the ASEAN Single Window initiative. He pointed out that currently, intra-ASEAN trade accounts for only 23% to 25% of the region’s total trade, indicating vast untapped potential for enhancing commerce among ASEAN member states.
Potential for Growth in ASEAN Trade
The partnership between MyEG and FMFF marks a significant advancement in Malaysia’s trade infrastructure, with ZTrade at its core. As the world becomes increasingly reliant on blockchain for secure and efficient data management, the introduction of ZTrade as the country’s NSW will likely catalyze growth in both domestic and cross-border trade.
The integration of blockchain technology in trade processes aims to minimize inefficiencies, reduce red tape, and promote faster clearance of goods. As Malaysia’s NSW harmonizes with China’s customs systems, it also sets the stage for broader regional cooperation within ASEAN, which could lead to a rise in intra-regional trade.
This collaboration, bolstered by the support of both governments and the logistics sector, is poised to create a more efficient, secure, and transparent trade environment, benefiting not only Malaysia but the entire ASEAN region.