Abstract
Catering to Novel Applications Increases the Scope for RFID Packages
Traditionally, radio frequency identification (RFID) packages have found applications in areas such as toll collection and security and access control. With the increasing customer awareness and reducing price levels, this technology is expected to find a wide acceptance in point of sale payment, baggage handling, document tracking, and medical monitoring purposes. Further, the large scale undertaking of pilot projects pertaining to evidence management systems and authentication by the Malaysian Government is likely to drive the usage of RFID systems in future.
This Frost & Sullivan research service provides an overview of and an outlook for the RFID markets in Malaysia. Based on its applications, RFID equipment in Malaysia can be segmented into four primary categories -- security/access control, transportation, manufacturing and logistics, and others. The study provides detailed revenue forecasts and market share analyses and is essential for both large and small market participants seeking maximum return on investments.
Levy of Stringent Dictums by Wal-Mart on its Suppliers Drive the Adoption of RFID Technology
RFID markets at large have largely benefited from Wal-Marts clear-cut directives insisting that by 2005, its top 100 suppliers (especially in United States) use RFID with the pallets and cases. Though the suppliers have complied with this requirement to some extent, the spurt in the volume of tagged cases and pallets, and tags reads has not been significant. "Nevertheless, it is likely that the top 200 suppliers of the company would use RFID by 2006 and the remaining would accept it by 2008," notes the analyst of this research. "RFID solution providers must highlight that the operational advantage gained by using this technology would result in significant competitive advantage."
Wal-Marts Malaysian suppliers form a 10 percent chunk of the companys 4000 suppliers in the Asia Pacific region. These suppliers are striving to be RFID compliant by 2008 and nullify the risk of losing business deals with the global giant. Some of the nations suppliers have already plunged into action and taken steps to initiate pilot operations by 2006.
Escalating Security Concerns Aid in Increasing the Scope for RFID Units
The rising number of buildings, libraries, and the growing demand for cars has brought security-related concerns to the forefront. This in turn has spurred the need for systems to monitor, track, and control entry and exit. Library management systems can use radio frequency electronic article surveillance (RF-EAS) systems to improve efficiency of tasks such as locating lost and missing books. "Also, the Malaysian Government is considering inserting RFID tags in car number plates to identify stolen cars," says the analyst. "RFID is developing into a key component of the advanced security tools and strategies, and is set to play a crucial role in curtailing the numerous thefts and crimes in the country."
Overall, though the buzz connected to RFIDs has been positive the lack of proper standards is restricting the growth prospects. Multimedia Development Corporation (MDC), Asian Strategy Leadership Institute (ASLI), and the Association of the Computer and Multimedia Industry of Malaysia (PIKOM) are some of the establishments that are working toward the development of common standards. This could significantly support the Malaysian RFID markets in witnessing a compound annual growth rate (CAGR) of 20.6 percent during the period 2004-2009. | 
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