Asia's Newest Frontiers

With real estate sectors in countries around Asia maturing fast, understanding of the term ‘emerging markets’ has changed. From towns that run on blockchain technology to floating cities we examine some of the region’s fresh frontiers.

- Dietrich Neu

BUILDING BLOCKS

Malaysian and Chinese developers are teaming up to build a cashless tourist town that runs on blockchain technology

When Malaysian property developer SWT International Sdn Bhd announced plans to turn a 635-acre piece of land off the coast of Malacca into a cashless “blockchain city”, it made waves in finance and property circles across the world.

The joint venture with Chinese engineering and construction company China Wuyi will turn the reclaimed land into the so-called Melaka Straits City. Developers are hoping it will become a leading tourist destination in Malaysia and a shining example of practical blockchain implementation at a time when the international community is still unsure about the technology. The development will host five boutique hotels, schools, golf courses, sports facilities, a national convention centre, and about 100 villas with access to a private beach built along the coastline.

Blockchain—a far-reaching term to describe a method of secure information transfer—will be used to manage the city’s payment transactions in the form of DMIcoin, a cryptocurrency developed and owned by SWT International.

When tourists visit Melaka Straits City, they will be required to exchange their fiat currencies for DMIcoin that can be used freely throughout the city with a smartphone app. The mechanics are similar to cashless payment systems already popular across Asia. Each vendor is issued a unique QR code, customers scan with their phones, and the transaction is handled automatically by DMI.