MY E.G. Services Berhad (MYEG) 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.
The group, together with its Philippine-incorporated companies, signed agreements for a collaboration with the Bureau of Customs and Cargo Data Exchange Center Inc., paving the way for the Philippines to adopt the digital solution known as Ztrade.
The signing was done during the sidelines of the three-day state visit of President Ferdinand Marcos Jr.
Ztrade is a first of its kind Web3 + Artificial Intelligence link between China and its trading partners – which runs on MYEG’s innovative Zetrix layer-1 blockchain platform.
The new platform is expected to play a pivotal role in bolstering the trade relationship between the Philippines and China.
China is the largest import and export trade partner of the Philippines.
In 2022, China was the Philippines’ largest supplier of imported goods valued at $28.22 billion or 20.6 percent of the total imports that year.
“The BOC, in collaboration with MYEG Philippines Inc. (MYEG PH), MYEG Ventures Inc. (MVI), and Cargo Data Exchange Center Inc., has executed a Memorandum of Understanding for the potential use of Zetrix Platform,” said Customs Commissioner Bienvenido Rubio.
“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 Regional Comprehensive Economic Partnership and the ASEAN-China Free Trade Agreement.”
“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,” Rubio added.
Under the collaboration, MYEG will provide the Ztrade solution in the Philippines, including ground installation, training, and assistance with customization 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.
“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,” said CDEC President Jason Gaw Cheng.
Malaysia, through its Ministry of Investment Trade and Industry, had announced in April 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.
Forbes Malaysia’s 48th richest man TS Wong, who is also the 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 secure, more intelligent, and more cost-effective processing of cross-border trades are now also being recognized 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 ASEAN and the RCEP region.”