Sarawak has unique advantages that could make it a potential hub for cryptocurrency and blockchain technology in the region which will bring much benefit and trickle down economic effect to the people including economic growth, quality job opportunities in technology, finance, and related sectors, and also may lead to increased investment in digital infrastructure, benefiting the broader population.
This is a proposal made during my Royal Decree debate in Parliament where I suggested some macro-policies to better improve regulations for the cryptocurrency sector to further encourage innovation and progressive growth for the benefit of the people and our country as a whole.
Such improvements includes developing a Central Bank Digital Currency (CBDC) which may provides a secure, government-backed digital currency, enhancing payment efficiency and financial inclusion, expanding our current regulatory Scope to cover emerging areas like decentralized finance (DeFi), non-fungible tokens (NFTs), and stable coins as this ensures comprehensive oversight, reduces risks, and fosters innovation in new crypto sectors, and also to Enhance Consumer Protection by mandating stricter reserve requirements, introduce insurance schemes for crypto assets, and establish a dispute resolution mechanism.
This helps protects consumers from fraud, scams, and exchange insolvencies, increasing trust in the crypto market.
Currently, cryptocurrencies are primarily overseen by the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) are recognized as securities under the **Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.
For Sarawak to fully tap into this growing market, it will require comprehensive
consideration of the benefits, identification of challenges, and alignment with national regulations.
I strongly believe that Sarawak has the advantage of becoming a Crypto Hub due to some of its advantages including our regions abundance of Renewable Energy and lower electric tariff. Sarawak has vast hydroelectric power resources, which could support energy-intensive crypto mining operations in a sustainable manner.
For example, regions like Iceland and Canada have attracted crypto miners due to their cheap and renewable energy sources.
Sarawak’s proximity to major Asian markets (e.g., Singapore, Indonesia, and China) also makes it a strategic location for cross-border crypto and blockchain activities. With some level of autonomy in State policies, Sarawak could implement crypto-friendly policies and incentives to attract businesses and investors. On top of that this also already aligns with existing policies and roadmaps such as the Sarawak Digital Economy Strategy 2030, which aligns well with blockchain and crypto adoption.
If done right, through favorable regulatory environment and tax incentives, we may reap the benefits such as that in Switzerland’s Crypto Valley in Zug which is a global hub for blockchain innovation. This will require close working relationship between federal-state Ministries to ensure successful implementation that will bring mutual benefit to not just region of Sarawak, but our country as a whole。