IoT Ecosystem of Malaysia
In the Internet of Things (IoT) room, Malaysia has what it takes to become a regional leader, as plans and strategies are in place to help the country move towards the goal. In the past few years, technology firms have built more products with Internet access capabilities — including watches, televisions, cameras and more. A separate IHS Markit study also indicated that more than 20 billion connected devices would be set up in 2020 (Sivakumar D., 2017). A simple search with Google Trends on the keywords “Internet of Things” and “IoT” showed the level of focus on this subject started to increase in 2013 and reached the highest point in 2016 while it has been around since the late 1990’s (Zaidi, 2017). The extraordinary jump in interest in recent years is a sign that this subject is significant. Because IoT affects time and society, politics, organizations and culture, it is difficult to ignore this issue with applications varying from home and personal to business, utilities and mobile applications.
Malaysia has launched its own IoT plan with the National IoT Strategic Roadmap by recognizing the value of IoT, which supports the need to research IoT readiness in Malaysia. Malaysia has adopted the Industry4WRD program in order to accelerate technological transformation in the country’s industrial and related services domains. The national strategy aims at positioning itself as a key destination for global smart manufacturing and attracting more high-tech investment. Industry4wrd seeks to raise productivity growth by 30 percent, attain a contribution of RM 392 billion (US$ 93.9 billion) by the manufacturing sector to GDP and 35 percent to highly skilled manufacturing workers by 2025 (Industry4WRD, 2018).
This roadmap was launched to accomplish three goals, namely building a favorable environment for the IoT industry, improving entrepreneur abilities in Apps and Services layers, and turning Malaysia into a regional IoT innovation hub. As such, Malaysia is targeting the IoT to help the industry, government, community, academic and research communities and build value. On the industry side, “performance will be the most influential effect. This would lead to changes in product and service design and ultimately to generate more value for consumers, which usually implies more sales for businesses. IoT in Malaysia has following impacts:
- Growing economic efficiency and profitability by automating tasks and prescribing them,
- Reducing environmental risks by sensing in real time and providing “just-in-time” details.
- Facilitate the government to establish better infrastructure and service planning, and track and manage through data.
- Improving awareness by making it possible for people to recognize and track previously inaccessible domains through the availability and accessibility of information in all areas of the world
GSMA expects that quarter of Malaysia’s overall cellular connections will be on 5 G by 2025. For the National Ferberisation and Connectivity Program (NFCP), which is a five-year program running from 2019 – 2023, RM 21.6 billion (US$ 5.2 billion) was approved (KER, 2019). The NFCP’s main objectives include delivering an average speed of 30 Mbps in 98 per cent of inhabited areas by 2020, and the availability of gigabits in specified industrial areas and all state capitals by 2023 (KER, 2019). RM 210 million (US$ 50 billion) was budgeted to accelerate the development of new digital technology for buildings, particularly schools, and also higher impact areas such as industrial parks.
BERHAD, M. (2015). NATIONAL IOT STRATEGIC ROADMAP: A SUMMARY. doi:http://www.mimos.my/iot/National_IoT_Strategic_Roadmap_Summary.pdf
Industry4WRD. (2018). Industry4WRD: National Policy on Industry 4.0. Retrieved from https://www.miti.gov.my/industry4wrd
KER, N. (2019, September 19). Everything you need to know about the National Fiberisation and Connectivity Plan. Retrieved from Soyacincau: https://www.soyacincau.com/2019/09/19/everything-you-need-to-know-about-the-national-fiberisation-and-connectivity-plan-nfcp/
Sivakumar D., M. F. (2017). A Case Study Review: Future of Internet of Things (IoT) in Malaysia. ASCENT International Conference Proceedings – Information Systems and Engineering,, 23-24.
Zaidi, M. F. (2017). The IoT Readiness of SMEs in Malaysia: Are they Worthwhile for Investigation? International Conference on International Business, Marketing and Humanities (ICIBMAH 2017), 34-42.