KUALA LUMPUR (Sept 17): MyEG Services Bhd (KL:MYEG) has teamed up with the Federation of Malaysian Freight Forwarders (FMFF) to promote ZTrade - a blockchain-based trade document system - as Malaysia's National Single Window (NSW) for cross-border trade facilitation.

FMFF, recognised and endorsed by the Ministry of Transport as a national association representing the logistics industry, currently has 1,500 members nationwide.

This partnership follows MyEG’s recent exclusive collaboration with East Logistics Link Co Ltd (ELLC), a subsidiary of the General Administration of Customs of China (GACC), to jointly develop and implement a NSW to facilitate cross-border trade in Asean.

In a bourse filing, MyEG said it has signed a three-year memorandum of understanding (MOU) with FMFF, under which both parties plan to work together to promote ZTrade as the NSW for domestic and cross-border trade in Malaysia. This includes promoting the platform to businesses and government agencies, offering training and support, and marketing ZTrade services to FMFF members.

ZTrade, a Web3 technology based on MyEG's Zetrix blockchain platform, provides near real-time access to certificate data, enhancing tariff calculations and customs clearance efficiency, according to the company.

MyEG received notification letters from ELLC in June to deploy connectivity for trade facilitation services with ZTrade, following a joint statement by Malaysia’s Finance Ministry and GACC on cross-border trade cooperation.

"Our exclusive collaboration with GACC, through ELLC, places us in a strategic position. This partnership combines world-leading technology expertise and deep insight into the practicalities of successful NSW implementation," said TS Wong, group managing director of MyEG Services Bhd, at the MOU signing ceremony.

"With continued support from FMFF and their understanding of business needs in Malaysia, we believe the industry engagement package we offer is unmatched, utilising proven technology and global best practices," Wong added.

Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, who witnessed the MOU signing, said the NSW initiative demonstrates the Malaysian and Chinese governments' commitment to leverage technology to enhance bilateral trade.

"I am confident that Malaysia's NSW, which will be harmonised with China's customs system, will facilitate business and trade operations by reducing red tape and streamlining processes, thereby advancing Malaysia-China cross-border trade," Zafrul said.

He added that the government’s next priority will be expanding the NSW to integrate with the Asean Single Window, as intra-Asean trade currently stands at only 23% to 25%, leaving significant potential for increased trade among Asean members.

Shares of MyEG settled three sen or 3.33% higher at 93 sen on Tuesday, giving it a market capitalisation of RM7.03 billion. 

https://www.theedgemarkets.com/node/726997