Market Sizing

The Zetrix blockchain primarily aims to serve the RCEP in phases, beginning with active trade partners of China, and then the whole of RCEP. Services that Zetrix will offer to nations and corporations include financial services, provenance and tracing, digital assets, trading, healthcare, etc.

For context, the RCEP (Regional Comprehensive Economic Partnership) is a free trade agreement between 15 countries in the Asia Pacific region, and economic powerhouses such as China, India, Japan, South Korea, Australia and Singapore are part of the partnership. It is the world’s largest trade bloc by size of GDP, and is bigger than the European Economic Area (EEA) founded in 1994 and the United States-Canada-Mexico Agreement (USMCA) signed in 2018.

According to the Malaysian Ministry of International Trade and Industry (MITI), China is the largest import and export partner with Malaysia, with export at RM 158.6 billion and import at RM 171.18 billion. Zetrix has the opportunity to introduce enhancements to existing products and services for the businesses conducted between China and Malaysia.

Although the financial sector stands to gain the most from blockchain-based service implementation due to its early adoption of cryptographic tokenization and smart contracts, the other sectors such as industrial manufacturing, consumer goods, energy and utilities, healthcare and pharmaceuticals, are poised to become major beneficiaries of this new innovation.

A survey conducted by the WEF (World Economic Forum) in 2019 suggested that many organisations are already looking at the traceability of data, the security of data and the distributed nature of the technology as the main features that they were interested in. Organisations are eager to introduce the technology into their products and processes, and Zetrix has the advantage of helping them get onboard with the technology and introducing them to a network that is trustable, renowned and secure.

Just the market size for global food traceability alone is USD10 billion. The market size for Covid vaccines is several times bigger (above USD100 billion), where traceability services from point of production to last mile distribution are essential. Leading experts estimate that Web 3.0, based on blockchain as its foundation, will easily be a multi-trillion dollar proposition in the decade to come.

Adding exigency to this traceability demand is the formation and integration of global value chains (GVCs) that give rise to many of today’s products and services. These GVCs are supply chains with linkages to different stages of production across countries and are heavily reliant on international trade, as the production of a final good may require that intermediate inputs or intermediate goods cross a national border several times. In RCEP countries, complex value chains (where factor content crosses a national border at least twice) are relatively more important than simple value chains, with higher value added linkages. Over 50% of the value added created through GVCs is created through these complex chains.

The value of the blockchain extends beyond merely serving addressable market needs, as many are not defined or have not arisen yet in the new digital economy. It creates new business models with new direct-to-buyer revenue streams, operational efficiency by process automation and removal of intermediaries, risk mitigation through tracing and authentication along supply chains, and social impact from democratic decision-making and ethical sourcing.