The Building Blocks for Malaysia’s Future: Why Blockchain Tech Needs Smart Capital

Malaysia’s digital economy is gaining momentum. With e-commerce income surpassing RM1 trillion in 2024^[1] and widespread adoption of cashless and cloud-based services, we are not just embracing innovation. We are shaping it.

Another major shift is on the horizon. Web3 is the next frontier – a decentralised and open internet powered by blockchain technology. It represents a new internet model where users control their digital identity, value, and interactions.

Blockchain, the primary technology that powers Web3, enables this transformation by decentralising verification and ownership. It also underpins systems like decentralised finance, stablecoins, verifiable identity, and decentralised networks (DePIN).

Cryptocurrencies have led advances in blockchain, demonstrating real use cases. Bitcoin enabled peer-to-peer electronic transfers without a central controlling authority. Ethereum was the world’s first programmable blockchain and continues to dominate the smart contracts space. Solana’s consensus mechanism enables thousands of transactions per second with low fees, rivaling traditional payment processors.

But every leap forward depends on what lies beneath. Behind seamless apps and platforms are systems that build trust, reduce friction, and ensure accountability.
Blockchain is emerging as one of these foundational systems. It supports real-world outcomes in sectors like halal certification, public services, cross-border trade, and inclusive finance.

Blockchain tech needs to thrive to power Web3. This is where venture capital comes in, providing crucial funding for startups to unlock new technological breakthroughs. 

At Malaysia Blockchain Week, the Minister of Science, Technology, and Innovation, Chang Lih Kang emphasised its importance in driving the country’s economic advancement: “Blockchain is not just a tool. It is foundational infrastructure that must serve all levels of society.”

The Malaysia Blockchain Infrastructure (MBI), set to go live this year, is designed to promote interoperability, reduce duplication, and encourage innovation. Crucially, it offers open access to local startups, businesses, and communities, ensuring widespread participation in the digital economy. 

However, the infrastructure will only thrive when policy goes hand in hand with informed capital. Unlike quick-turnaround digital products, blockchain infrastructure takes longer to build. Many local builders with high-potential ideas still struggle to find the right type of early support. 

Through Jelawang Capital's Emerging Fund Managers’ Programme and the Regional Fund Managers’ Initiative, we are on the lookout for venture capital funds that invest in technologies that contributes towards deepening Malaysia’s economic complexity. This includes frontier areas such as Web3 and artificial intelligence.

Understanding Web3 and Blockchain

^[1] Department of Statistics, 2024; https://www.komunikasi.gov.my/en/public/news/21743-malaysia-s-e-commerce-revenue-to-reach-rm1-65-tril-by-2025