Under the agreement, the three parties will work together to explore trial proof of concept (POCs) using technologies like blockchain as well as connect to trade finance solutions that can facilitate faster approval and fraud prevention.
Blockchain is a decentralised ledger technology used by a business network to securely exchange digital or physical assets. Each member of the network is granted access to an upto-date copy of this encrypted ledger so they can read, write and validate transactions. Once a transaction is validated using a consensus process, it is instantly committed to all ledgers in the network.
The net result is faster, private, confidential and auditable business-to-business interactions among suppliers, distributors, financial institutions, regulators or anyone wishing to make a secure exchange. Blockchain creates a permanent, digitised chain of transactions that are grouped in blocks and cannot be altered.
Mr Tan Chong Meng, Group CEO of PSA, said that with this collaboration, a more transparent, secure and robust certification system and document flow is expected to benefit the whole supply chain as well as have enormous potential for application in sectors such as food, pharmaceutical and trade finance. Across the global movement of goods and cargo, many activities continue to 'operate in silos'.
Mr Randy Walker, Chairman and CEO - IBM Asia Pacific said that IBM will leverage the Hyperledger Fabric platform, its Supply Chain Business Network, and expertise from the IBM Center for Blockchain Innovation in Singapore to pioneer projects with the potential for widespread impact across industries in China and Southeast Asia.”
Mr Teo Siong Seng, Managing Director of PIL, also expressed his satisfaction for the MoU which seeks to develop solutions that translate into fraud and error reduction, as well as cost savings.