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Philippines Becomes Second Country after Malaysia to Adopt Ztrade, the Cross-Border Trade Application on Zetrix Layer 1 Blockchain
KUALA LUMPUR, Malaysia, July 27, 2023 /PRNewswire/ -- MY E.G. Services Berhad ("MYEG" or "the Group") has entered into a collaboration and secured regulatory approval to deploy its blockchain-based customs clearance and processing services for trade flows between the Philippines and China.
MYEG’s collaboration agreement with Philippines Bureau of Customs (“BOC”) and Cargo Data Exchange Center (“CDEC”) to digitalise Philippines trade using Zetrix Blockchain, witnessed by Philippine President Ferdinand Marcos Jr (front, right) and Alfredo Pascual, Secretary of Trade and Industry of Philippines (front, left).
The Group, together with its Philippines-incorporated companies, signed agreements for a collaboration with Philippines Bureau of Customs ("BOC") and with Cargo Data Exchange Center Inc. ("CDEC"), paving the way for the Philippines to adopt the digital solution known as Ztrade – a first of its kind Web3 + Artificial Intelligence (AI) link between China and its trading partners – which runs on MYEG's innovative Zetrix layer-1 blockchain platform.
Under the collaboration, MYEG will provide the Ztrade solution in the Philippines including ground installation, training, and assistance with customisation requirements while CDEC, which is a value-added service provider of trade and logistics solutions for the BOC will support the integration of Ztrade to its platform to ensure a seamless experience for users. The agreements remain in effect unless mutually terminated.
This groundbreaking initiative by MYEG follows the signing in March of a partnership between the Group and East Logistic-Link Co., Ltd, a wholly-owned agency of the General Administration of Customs of the People's Republic of China ("GACC"), to jointly provide a full suite of cross-border trade facilitation services on the Zetrix blockchain platform.
This includes the lodgment of certificates of origin as well as potentially other certificates relevant to cross-border trade like food safety, quarantine, and bill of lading, thus enabling all data to be available accurately in near real-time, hence, increasing the efficiency of tariff computation and customs clearance, especially for trade within the Regional Comprehensive Economic Partnership ("RCEP").
Leveraging Web3 technologies of blockchain smart contracts and AI, the Ztrade service can overcome the prevailing limitations of conventional technology architecture in providing a reliable and automated method of securely and effectively digitalising trade clearance processing whilst removing the cumbersome retro-verification currently practiced, thus making it hassle-free, seamless, faster and simpler overall.
Malaysia, through the Ministry of Investment, Trade and Industry (MITI), had in April announced its support for the adoption of a blockchain-based single window system for the mutual recognition of digital certificates of origin to improve trade facilitation and reduce technical barriers for more efficient and secure processing of goods originating from Malaysia to China.
TS Wong, Group Managing Director of MYEG, said: "At MYEG, we are pleased that the advantages of deploying a Web3 + AI-based solution i.e. Ztrade in offering faster, secure, more intelligent and more cost-effective processing of cross-border trades are now also being recognised in the Philippines, besides in Malaysia and China. We look forward to expanding this service to other nations as we continue pursuing our objective of deploying this pioneering solution, which leverages the power of Web3 and AI technology, across Association of Southeast Asian Nations ("ASEAN") and the RCEP region."
Meanwhile, BOC Commissioner Bienvenido Y. Rubio said: "This Platform is a blockchain-based application that will enable the verification of Certificates of Origin for exports to China and vice-versa, using express clearance and tariff exemptions under the RCEP and the ASEAN-China Free Trade Agreement (ACFTA). The proposed use of the Zetrix Platform shall be at no cost to the Philippine Government and is expected to facilitate greater trade through seamless yet highly secure transactions between countries."
CDEC President Jason Gaw Cheng added: "At CDEC, we are proud to be the partner of MYEG in launching the Zetrix Platform, which will increase the global trade competitiveness of the Philippines and improve ease of doing business for our traders and logistics service providers".
The roll-out of Ztrade in the Philippines also marks the broadening of MYEG's presence as a key enabler of government digitalisation in the archipelago. Since commencing operations in 2017, the Group has gone on to establish itself as a leading provider of e-government services in the Philippines.
Today, the Group provides a variety of services for a wide-range of government agencies including the National Bureau of Investigation, the Securities and Exchange Commission, Bureau of Internal Revenue, Landbank of the Philippines, PhilHealth, Philippines Economic Zone Authority and the Tourism Infrastructure and Enterprise Zone Authority.
About Zetrix
Zetrix is a layer-1 public blockchain that facilitates smart contracts and delivers privacy, security and scalability. Zetrix's cryptographic infrastructure can be introduced to multiple industries to connect governments, businesses and their citizens to a global blockchain-based economy.
Developed by MY E.G. Services Bhd, the cross-border and cross-chain integration with China enables Zetrix to serve as a blockchain gateway that facilitates global trade by deploying critical building blocks for Web3 services such as Blockchain-based Identifiers (BID) and Verifiable Credentials (VC).
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.
