Malaysia Bets Big on Blockchain—Launches National Digital Backbone to Fuel Economic Overhaul

Kuala Lumpur makes its play for Web3 dominance with a government-backed blockchain infrastructure push. Here’s why it matters—and who stands to profit.

The Infrastructure Play

Malaysia’s new ’chain cuts through bureaucratic red tape, promising faster settlements for everything from palm oil exports to microloans. Critics whisper it’s just a shiny wrapper for legacy systems—but try telling that to the ministers posing with Ledger nanos.

The Real Test

Adoption metrics will tell the tale. If local businesses actually migrate from WhatsApp-based invoicing to on-chain smart contracts, this could be transformative. If not? Another line item in the ’national innovation’ graveyard—right next to 2017’s ’Bitcoin Islamic Trading Hub’ proposal.

One hedge fund manager we spoke to put it best: ’Finally, a use case for blockchain that doesn’t involve JPEG monkeys or laundering Russian oil money.’ Progress?

Malaysia has officially activated its National Blockchain Infrastructure (MBI), a government-backed initiative aimed at accelerating the adoption and development of blockchain technology across various sectors. Powered by Zetrix, a public layer-1 blockchain network, the MBI seeks to unify the country’s fragmented digital ecosystems and make blockchain-based services more accessible, according to a joint statement on Wednesday.

Developed by national R&D center MIMOS and digital services provider MY E.G. Services, the MBI is a CORE component of Malaysia’s National Blockchain Roadmap. It functions as a foundational layer designed to simplify the creation of blockchain applications across multiple chains, including Ethereum, Solana, and enterprise networks.

The MBI aims to underpin a wide array of applications, from enhancing supply chain traceability and digital identity management, including the MyDigitalID program, to fostering decentralized finance (DeFi) and the tokenization of digital assets. By providing a neutral and trusted platform, Malaysia intends to lower the barrier to entry for blockchain development and promote digital inclusivity.

Dr Saat Shukri Embong, MIMOS Acting President, emphasized MBI’s role in driving national competitiveness and making blockchain technology accessible to all Malaysians. TS Wong, MYEG Group Managing Director and Zetrix Co-Founder, hailed the launch as a "watershed moment" for blockchain adoption in Malaysia and ASEAN, highlighting Zetrix’s capability to facilitate seamless cross-border and cross-chain transactions.

Early adopters of the MBI include Masverse, Cokeeps, and iTrace, signaling initial industry engagement.