IoT Strategic Roadmap Book

National
Internet of Things (IoT)

Strategic Roadmap
National
Strategic Roadmap
an initiative by
National IoT Strategic Roadmap
ii
in alignment with
First Publication: 2014
© MIMOS Berhad
All rights reserved. No part of this publication

may be reproduced, stored in a retrieval
system or transmitted in any form or by any
means, electronic, mechanical, photocopying,
recording or otherwise without the prior
permission of the publisher.
ISBN: 978-967-11398-3-7
Published by:
MIMOS BERHAD
Technology Park Malaysia
57000 Kuala Lumpur, MALAYSIA
Tel: +60 3 8995 5000 & +60 3 8995 5150 MIMOS MIMOS Berhad
Fax: +60 3 8996 2755
info@mimos.my
@mimosmalaysia MIMOS Malaysia
www.mimos.my
iii
acknowledgement
We wish to thank the following organisations for their invaluable support, expert input and commitment with regards to the
development of this document.
flexTTech
Sdn Bhd
Found from website pdf
Modify PMS
Smart
QAAS Sys Inter
Business
iv
v
vi
Editorial Team
Ahmad Helmi Abdul Halim
Yoong Siew Wai
Dr. Mohammad Shahir Abdul Majed Shik
Jamal Hamzah
Francis Goon Wooi Kin
Mohd Faizal Amin
Laurence Sebastian
Norazrina Jaafar
Zalina Sayuti
Nur Farahin Musa
Zainal Mohamad Nor
Ng Yeok Hong
vii
chapter 01
Messages
viii
Our everyday lives are filled with the benefits of the

accelerated pace of science. Smartphones keep
us connected to friends and family, work and the
wider world. Agricultural advances help ensure
we are fed. Antibiotics and vaccines save lives.
Transport systems enable us to travel locally and
internationally.
Time and again, we also have seen that science
leads countries to greater heights and propels them
forward, thereby increasing both their economic
status as well as their quality of life. In years to
come, science will play an even more central role in
our knowledge-driven economy.
Dato’ Sri Mohd Najib bin Tun Abdul Razak
Prime Minister of Malaysia
Messsages
ix
The ability to create,

distribute and exploit
knowledge through
science, technology and
entrepreneurship has become
a major source of competitive
advantage, wealth creation
and improvement in the
quality of life.
I strongly believe the

successful implementation of
the many science, technology
and industry programmes
will depend heavily on the
close understanding and
collaboration between the
industry and the Government.
Message from
Datuk Dr Ewon Ebin

Minister of Science, Technology and
Innovation, Malaysia
ICT has a pivotal role in the national aspiration community to thrust homegrown technologies
of becoming a High Income Nation by 2020. for commercialisation to a higher level.
From the strategic role as an enabler, ICT has
become a key economic sector of the country. The proliferation and the industrialisation of IoT
As such, it is imperative to position ICT as an in Malaysia will lead to market creation, and in
industry with a sustainable national innovation turn, job creation as well as accumulation of
ecosystem. The advent of ICT has conceived intellectual property. With the right direction
the Internet of Things (IoT), the next evolution and policies, this will bring Malaysia further
of the Internet. towards a knowledge-based society.
The Review of National Strategic ICT Roadmap The National IoT Strategic Roadmap that
2008 and Technology Roadmaps identified has been thoughtfully formulated will be the
six technology focus areas; specifically Cloud fruit of a collective national endeavour, where
Computing, Wireless Intelligence, Big Data and each and every stakeholder has critical role
Analytics, Security, E-Services and Ubiquitous to play. I am confident that it will rejuvenate
Connectivity. Accordingly, IoT technology being vigour and energy to various implementation
the convergence of the six technology focus agencies in the Government and the Malaysian
areas will galvanise the Government machinery ICT industry towards achieving Vision 2020.
and the country’s ICT industry alike in forging
ahead with our technological transformation, I congratulate MIMOS for driving this initiative.
and increase Malaysia’s global competitiveness. I would also like to thank all our partners in
the private and public sectors for their strong
Malaysia’s IoT Strategic Roadmap is part of support and contributions to realise the
our continuous efforts in harnessing science, aspirations as contained within this Strategic
technology and human capital to create a Roadmap. The document will be the impetus
new source of economic growth. IoT will towards mapping our national strategic
create boundless opportunities for the R&D direction as we embark on the new technology.
Messsages
xi
Message from
Dato’ Sri Dr Noorul

Ainur Mohd Nur
Secretary General of the Ministry of
Science, Technology and Innovation,
Malaysia
ICT has been a major driver of the national radically transform business, community,
economy because of its transformational government and personal spheres. IoT will be
effects spread horizontally across other sectors. technologically and economically feasible to
Hence, the ICT sector will continue to be the transform the way people interact with objects
key focus for Malaysia and is expected to grow and enrich the digital user experience.
progressively driven by the convergence of
industries due to digitalisation. A strategic focus on laying the groundwork
for IoT is consistent with the Government’s
MOSTI takes the view that the Internet of innovation agenda. By the creation of Open
Things (IoT) is key to the transformation of Innovation Framework and Open Community
Malaysia’s digital economy. IoT gives rise to Data Framework, Malaysia can reap the future
the interconnected world and is made possible benefits of scientific and technological advances
by technologies and research disciplines that in IoT and compete globally through increased
enable the Internet to reach out to the real world productivity and sustainability, as well as
of communicating objects. With its ubiquitous subsequently boosting economic growth, and
intelligence, it would be the cornerstone for enabling higher income for the nation.
Malaysia towards a new era, one that will
xii
Message from
Prof Tan Sri Zakri

Abdul Hamid
Science Advisor to the Prime
Minister of Malaysia
The Internet of Things (IoT) is a testament The Internet of Things will be part of the
of the powerful effect of science. It will Science to Action (S2A) initiative championed
permit us to see advancements in the way by the Prime Minister. S2A is an initiative
we communicate and share information via to intensify the application of science and
man-made objects and devices. Although this technology for industry development, people’s
has been happening since the day the Internet well-being and governance of science,
was created, IoT will present a totally different technology and industry that aligns to the
means of doing so. New Economic Model which was introduced
in 2010.
It will digitise the world and connect people,
processes, data and things. We are evolving
from human-to-human and human-
to-machine connections to embedded
intelligence. From 200 million ‘things’ or
devices being connected globally, we have
progressed to connecting 10 billion things,
and with the advent of IoT, we can expect 50
million things connecting to one another.
Messsages
xiii
Message from
Datuk Abdul Wahab

Abdullah
President and CEO of MIMOS Berhad
On behalf of the Technical Working Group, it region’s top industry players. The resulting
is our pleasure to present the National IoT document has been prepared based on careful
Strategic Roadmap for Malaysia, a document assessments of various factors and trends.
that will chart the steps of the development Most importantly, it took into consideration the
of a sustainable IoT industry, generate reality of the challenges facing the national
continuous enrichment and create positive economy now and in the future. Implemented
spillover for the country in decades to come. with fidelity, the recommended initiatives will
complement the Government’s own action
The National IoT Strategic Roadmap is a set plans and transformational programmes.
of recommended actions that we believe can
effectively propel Malaysia to the same league It has been a great privilege to work with such
as industrialised and prosperous nations. This a dedicated and selfless team of government
document engages stakeholders in public and and industry professionals in drawing up this
private sectors, and outlines clear strategies for National IoT Strategic Roadmap. With the
action on building a successful IoT ecosystem necessary funding, facilities and pool of talent
for Malaysia that fosters Open Innovation, smart that we have already put in place and continue
collaboration and long-term development. to develop, I can attest that Malaysia is in for an
exciting era of game-changing technologies.
We have arrived at this stage after a series of
consultations, brainstorming sessions and a We look forward to continue to work with all
huge amount of hard work by the task force of you in bringing this critical public-private
made of relevant government officials and the initiative to fruition.
xiv
Methodology
1 CONFERENCE
IoT Techical Working Group Workshop
2 MULTI-STAKEHOLDER
Partnership Engagement Sessions
2 TASK FORCE
Engagement Sessions
20 ONE-TO-ONE
Sessions
KEY ContributOrs
• Mathew Simon • Mohammad Afini Mat Rani
• Lee Yu Kit
• Akram Mackeen
• Hasnul Nadzrin Shah Abdul Halim
• Goay Heow Khoon Shah
• Rajvinder Singh • Assoc. Prof Dr Norliza Mohd Noor

• Khairul Nizam • Dr Chong Yu Zeng
• Dr Khoh Soo Beng

• Mohd Parid Sulaiman
• Dr Mohd Norazmi Alias
• Seeni Mohamed
• Mohd Zabri Adil Bin Tabib
• Shanmuganathan Palaniasamy
Methodology
xv
KEY ContributOrs (CONt’D)
• Ahmad Helmi Abdul Halim

• Dr Dickson Lukose
• Cheryl Yeoh • Gopinath Rao Sinniah
• Andi Suswandi • Dr Mazlan Abbas
Found from website pdf • Saat Shukri Embong
Modify PMS
• Yoong Siew Wai
• Claire Margaret Featherstone

• Mohamad Zamroh Bin Mahmud
• Noor Musaddik Mokhtar
• Tengku Zaib Raja Ahmad

• Ong Kian Yew
• Md Rusli Haji Ahmad
• Shaifubahrim Mohd Saleh
• Dr Wan Abd Rahman Jauhari Wan

• Hasannudin Bin Saidin
Harun
• Ong Chuan Poh
• Dr Wan Sazaley Wan Ismail
• Dr Dzaharudin Mansor • Zaky Bin Moh
• Rosedalina Ramlan
• Bikesh Lakhmichand
• Aziawati Ismail
• Robert C.V. Tai

• Norhasrizam Hashim • Mohd. Zahrom Bin Zain
• Kavintheran Thambiratnam
xvi
Chapter
Our Journey
xviii
14-15 May 2014
Internet of Things Technical Working Group

(TWG) Workshop
Our Journey
xix
Participants’ Profile
11% 6%
Multinational Corporations Others
(MNCs)
19%
Academia
Total
Participants
193
17% 30%
Large Domestic Companies Government/
(LDCs) Agencies
17%
Small and Medium Enterprises
(SMEs)
xx
25 June 2014
Multi-Stakeholder Partnership
Engagement Session
Our Journey
xxi
19 August 2014
Multi-Stakeholder Partnership
Engagement Session
xxii
9 & 23 July 2014
Task Force Engagement Session

contents
National IOT Strategic Roadmap
Chapter 01 : Why Internet of Chapter 04 : Implementation
Things (IOT)?.......................................................... 1 Strategy............................................................. 33
1.1 Introduction........................................... 2 4.1 Seeding Existing Initiatives................. 34
1.2 Megatrends........................................... 3 4.2 Alignment with Digital Lifestyle
1.3 Market Value Shift Driven by Malaysia (DLM) Initiative..................... 35
Megatrends............................................ 5 4.3 Pilot Project Proposals....................... 41
1.4 Technology Trends................................. 7 4.4 Transformational Steps for the
1.5 Opportunities in IoT............................... 9 Development of IoT as an Industry..... 49
1.6 Global IoT Implementations................ 12 4.5 Conclusion........................................... 52
1.7 Market Analysis................................... 14
Chapter 05 : Sustainable Game-
Changing Strategies.................................. 53
Chapter 02 : Where we are......................... 17
5.1 Overview............................................... 54
2.1 Malaysia is Ready for IoT..................... 18
5.2 Formation of IoT Malaysia................... 57
2.2 Environmental Scan............................ 20
5.3 Establishment of the IoT Open
2.3 Challenges........................................... 21
Innovation Framework........................ 61
2.4 Drivers/Enablers................................. 24
5.4 Creation of the IoT Open Community
2.5 Gap Analysis........................................ 26 Data Framework.................................. 66
5.5 Implementation................................... 69
Chapter 03 : What We Want to
Achieve ................................................................27
Chapter 06 : Way Forward AND
3.1 Vision and Mission............................... 28 OUTCOMES............................................................. 71
3.2 Goals of the Malaysia IoT Strategic 6.1 Way Forward: Development of the
Roadmap.............................................. 29 Implementation Plan........................... 72
3.3 Target Beneficiaries and Value 6.2 Outcomes............................................. 74
Creation............................................... 30
6.3 IoT for Malaysia................................... 77
3.4 Implementation Gap Analysis............. 32
Powering Malaysia
Environment Monitoring Water Management

Monitoring of pre-emptive fire conditions, soil Assessment of water quality and efficiency
moisture and earth density to define alert zones in water treatment plants to reduce
for forest fire detection and landslide prevention wastage and cost
Air Pollution Control

Control of harmful pollutants from
factories and cities
Temperature and Pressure Monitoring
Monitoring of temperature and pressure
in oil well downhole tubing
Hospital Patient Management

Monitoring of health status of patients
Water Quality Study
Study of water quality in rivers and
seas for wildlife sustainability and
ecological preservation
Health Monitoring Trackers

Tracking personal health status on-the-go
Agriculture and Aquaculture Management Automotive Emission Control

Control of micro-climate conditions to maximise Detection of emission levels to aid engine
production and quality of produce and livestock efficiency and to regulate carbon footprint
Why Internet of Things (IoT)?
1
chapter
01
chapter 01
Why Internet of
Things (IoT)?
2 chapter
01
chapter 01
Why Internet
of Things (IoT)?
1.1 Introduction 1.1.2 Components
Internet of Things (IoT) envisions that Characterising IoT by referencing the number
everything in the physical world is connected of connected devices or connections would
seamlessly and is securely integrated through be oversimplifying the phenomenon. IoT is a
Internet infrastructure. When things react complex solution encompassing all aspects
to the environment or a stimulus, data will of the Internet; including analytics, the cloud,
be captured and transformed into valuable applications, security and much more; besides
insights, which can be utilised in various devices and connectivity.
application domains, ranging from automated
home appliances to smart grids, smart homes
and smart manufacturing, to name a few. Connected Connectivity
Things Data & Infrastructure
1.1.1 Definition Cloud Data Data

Protection Processing
Static Dynamic
The term “Internet of Things” was first coined Storage Connectivity

by the co-founder and Executive Director of
MIT’s Auto-ID laboratory, Kevin Ashton, in the Knowledge for Integration &
mid-1990s1. Major vendors and technology Action & Analytics & Collaborative
Feedback Apps Information
leaders have announced initiatives to leverage
IoT opportunities, and define IoT differently,
aligning to their own area of speciality (refer
to Appendix 1). Nevertheless, there are salient Domain
Knowledge
Apps &
Services
attributes across the array of definitions;
such as sensors, things, people, processes,
automation, data, networks, connectivity, Figure 1.1: Components of the Internet of Things
convergence and intelligence. IoT, in this
document, will be defined as “Intelligent
Technologically, connecting things to
interactivity between human and things to
the Internet can be accomplished with
exchange information and knowledge for new
the existence of three main technology
value creation”.
components (refer to Figure 1.1), namely:
3
chapter
01
i. Connected things with embedded sensors: We have identified four megatrends salient to
Sense first-hand and multidimensional the paradigm shift and shape of the world in
information and conditions of an the coming years. The megatrends are highly
event autonomously – without human interrelated and will influence changes in the
intervention. In addition to capturing status and expectations of individuals, global
information, these connected things can economy and physical environment.
act and react. As such, the environment
context will be modified according to the
1.2.1 Demographic shift
information received by the sensors, and
this cycle will be repeated continuously. Population structure and composition are
ii. Connectivity and infrastructure: expected to be different from today, with
Infrastructure such as cloud, security, a projected global population of 9.4 billion
storage, privacy and processor units in 2050 (refer to Figure 1.2). There are four
facilitate continuous, real-time data and significant phenomena worthy to note:
information flow and feedback loops. increasing aging populations in developed
countries; developing countries will host
iii. Analytics and applications: Transform increasing young populations with India
sensor-generated information as new projected as a nation with the highest young
and key sources of knowledge for action- populous2; Muslims will be one-third of the
taking. These analytics and applications world population in 20503; and rise of women’s
leverage on the data gathered, converge power in economic creation.
the information for further analysis and
in turn provide actionable insights, then Besides the increase in population size, 65
offer unique solutions for users to gain percent of the 2050 population will be urban
additional or enhanced life experiences. dwellers4 and the emergence of mega cities
(minimum 10 million population), mega regions
1.2 MegaTrends (above 10 million population) and mega corridors
by linking two mega cities or mega regions5,
Megatrends are pivotal external variables which will take place primarily in Asian cities6.
to stakeholders in a business ecosystem. From the gender perspective, women are a
Through the lens of megatrends, we are able cohort that will change the landscape of decision
to understand the interplay of environmental, making processes and priorities.
economic, social, political and other factors
in the next five to 10 years. A nexus of Implications: The increase in population
megatrends will reshape the social structure, size and geographical distribution will pose
and human needs and wants. It channels high competition for shelter and security,
information for all stakeholders to predict and demand for healthcare as well as better
possible events or creations of the future; nutrition. An aging society will increase
identifies and taps preferable conditions for spending on long-term care for independent
business opportunities. living and mobility.
4 chapter
01
EUROPE
739m
720m
NORTH AMERICA ASIA
344m 4,157m
471m 5,424m
AFRICA
LATIN AMERICA
& CARIBBEAN 1,030m
585m 2,084m
729m
Population in 2010
Population in 2050
Figure 1.2: Global population of the future Source: http://www.theguardian.com
1.2.2 Individual empowerment Implications: Living standards improve

with higher literacy rates and the ability
With the impact of population growth and to access products and services based on
emergence of mega cities, the middle class will individual needs, with “the-world-revolves-
expand in absolute percentage of the global around-me” mentality as one of the key
population, particularly in developing countries. drivers of consumer desires.
The increase in wealth and knowledge leads

to a paradigm shift in terms of lifestyle and 1.2.3 Food, water and energy nexus
needs. There will be new styles of consumer
With population growth and expansion
desires and moves towards diets rich in food
of the middle class driving the rapid
and beverage products.
industrialisation in developing countries,
scarcity of finite resources and
Organisations are under pressure to connect
environmental degradation will be further
and resonate with market needs, and strive to
intensified. This warrants immediate,
engage and retain with their target markets,
effective and efficient strategic actions to
with effective and efficient targeted marketing
curb pressure on natural resources and
by offering personalised products and
protect biodiversity for the future.
services, instead of a mass approach.
5
chapter
01
It is predicted that 30-50 percent of all food New paradigm shifts happen when a globally
grown worldwide may be lost or wasted interconnected world – one that is open and
before or after it reaches the consumers7. To neutral with free sources of information –
achieve sustainability, future improvements generates an informed, educated population
in agriculture will require radical changes with the tools and desires to bring about
in increasing agriculture yield, zeroing institutional change. The pace and possibility
wastage within the food chain, and enhancing of communication has never been greater;
techniques in food production, storage and the Internet, television and radio provide
transportation. Studies also found that there universal platforms for collective thinking,
would be no overwhelming obstacle to feed where everyone wants their voice to be heard
a global population of 9.4 billion in 2050, and counted. New media has accelerated the
provided food yields are boosted, waste is cut timeline for sharing information and is putting
both after harvesting and in the kitchen, and unprecedented demands on the accountability
food distribution is improved8. of politicians and leaders around the world.
Implications: Green Revolution through Implications: The distribution and sharing

Sustainability will be the win-win approach of information lead to widely distributed
in meeting the demand of 9.4 billion people and shared power, and informal networks
by 2050. Innovative and efficient agricultural will undercut the monopoly of traditional
practices are critical to produce more with bureaucracy. The ever increasing speed
‘less and lesser’ resources without damaging of the Internet demands governments to
the environment through soil degradation or be more transparent and efficient in their
water pollution. operations in return for political mileage.
1.2.4 Diffusion of power 1.3 Market value shift driven by

MegaTrends
Clearly, there is a significant implication of
demographic shift and population growth to the Global megatrends will produce opportunities
market ecosystem. The transition of the next and challenges for the future and urge
economy powerhouse from the West to the East transformation for the business process
and South in addition to the rise of networked to deliver market needs. The effects of
societies fuelled by technology advancements megatrends will happen concurrently but
and democratised information will encourage impact a wide spectrum of market segments
people to participate actively and become in different magnitudes. For the agriculture
prosumers (consumers who become involved segment, natural resource scarcity and
with designing or customising products for growing population size will pressure the
their own needs) rather than passive receivers agriculture sector for reformation to minimise
at the end of the value chain. impact to the environment yet able to feed the
6 chapter
01
growing population. Therefore, minimising adaptive learning orientated in all stages of

the reverse impact to the environment from learning and education processes.
agriculture and other human activities
are critical to reduce further pressure and The megatrends which underscore future
deterioration of the natural environment. The human developments are complex and
effectiveness of protection and restoration resultant of a reciprocal effect due to
efforts are attributed to the collaboration population growth and economic activities.
and concerted efforts from ecosystem Existing standard management and reactive
stakeholders for a sustainable future. modes of government service deliveries are
not able to match with citizens’ needs. In order
Transformation in education sector is deemed to achieve balance and inclusive development
essential in providing knowledge workers as a of society, governments need to create a
catalyst for economic growth. Factory model sustainable environment to enable businesses,
education will not be able to pace with future communities and citizens to learn, create
talent needs and a learner-centric approach, and prosper in an open and collaborative
where a collaborative, active, engaging and way, through the provision of city governance,
interactive model helps students increase platforms and spaces, which integrate and
their knowledge and develop the skills needed leverage intelligence across communities,
to succeed in the knowledge society. Future through the efficient in use of scarce
learning would be instant feedback and resources. Table 1.1 illustrates market value
Vertical Market As Is To Be
Agriculture Resource dependency & serves as Knowledge-based & sustainable

economic power agriculture businesses
Education Structures & curriculum Open & personalised lifelong learning
Healthcare Curative & disease treatments Wellness management: Self-care & self
diagnosis (prognosis)
Government Standardisation Open & smart government services

Service Delivery
Smart City Reactive management Integrated & seamless service delivery
Environment Reactive management Preservation & restoration
Table 1.1: Market value shift

7
chapter
01
shift scenarios for several vertical markets activities from the physical world to the virtual
due to the influence of megatrends. world through digitisation of the business
process. E-commerce burst onto the scene in
In order to address future needs, IoT fits well the mid-1990s. Subsequently, the Internet has
by leveraging its convergent technologies become increasingly mobile and a socialising
(things, connectivity and infrastructure, platform for businesses and individuals that
analytics and applications) to enable seek mobility and convenience.
enterprise and individuals to be accurately
informed of an event, optimise resource The Internet of yesterday is a growing universe
usage, and respond strategically. of interlinked humans and creates new
generations of interaction experiences. Internet
usage has exploded since 1995 where the first
1.4 Technology Trends
billion users were reached in 2005. The second
The Internet has had significant impact billion was in 2010, and the third billion is
in almost every facet of our lives. It is the expected to be reached by the end of 20149.
window to new ideas, information, and
a whole new world of communication. It The next phase of the Internet is on its way: a
has grown and evolved to influence how world of networked smart devices equipped
we interact, conduct business, learn, and with sensors, connected to the Internet, all
proceed day to day. As much as it has sharing information with each other without
reformatted our lives, in the process, the human intervention, known as the Internet of
Internet itself has changed too. Things (IoT).
The Internet is evolving (refer to Figure 1.3). It Key markets signal the increase of connected
becomes an ever more pervasive and critical devices or things globally attributed to signify
infrastructure underpinning society and the presence of IoT. This is indicated by
commerce around the globe. In 1990, with the number of Internet-connected devices
the creation of World Wide Web (a method of surpassing the global population, and by 2020,
publishing information on the Internet) by Tim Internet-connected devices are expected to
Berners-Lee, the Internet became the richest number between 26 billion and 50 billion, and
source of information, and since then the number clock 880 million unique mobile subscribers.
of websites and webpages have exploded. Table 1.2 details several key market signals.
As a result, the Internet has graduated from a With the dramatic rise in the number of
mere access point for information. Online and connected devices and connected individuals,
offline were once two very separate worlds. market experts forecast that four interwoven
But with the rise of e-commerce and in and interactive technology pillars will fuel and
particular mobile e-commerce, the distinction shape IoT, specifically:
between online and offline is blurring rapidly.
i. Big data technologies will be the
The Internet has transformed economic
cornerstone in extracting meanings and
8 chapter
01
50B Internet-connected
devices
10B
Business and Societal impact
200M
Immersive Internet of
Networked Experiences Things
Economy Digitise Interactions
Digitise the World
Connectivity Digitise Business (Business & Social) Connecting
Digitise access to info Process • Social • People
• E-mail • E-Commerce • Mobility • Process
• Web Browser • Digital Supply Chain • Cloud • Data
• Search • Collaboration • Video • Things
Human-to-Human Human-to-Machine Embedded Intelligence
Intelligent Connections
Figure 1.3: Internet evolution Source: Adapted from CISCO
insights from the diverse, enormous functionality to users. The technology will
and continuously expanding data and allow information and knowledge to be
information collected by things and accessed and delivered to anyone, anytime
sensors, enriching user experiences and anywhere.
and enabling new business processes
iii. Social media is transforming the
and models. The relevant and valuable
interaction and communication between
intelligence derived from data will open
individuals in new and unexpected ways.
up possibilities of new processes and
The information sourced from physical
functions previously deemed not feasible.
movements and online interactions
The intelligence obtained through big
will promote interconnected societal
data are able to perform complex tasks
engagements, sharing of information,
including remote controlling, monitoring,
collaboration and innovation.
sensing, decision making, and reacting to
specific situations. iv. Mobile devices and things i.e. physical
objects are platforms for social
ii. Cloud computing will serve as platform
communication and networking in both
for the delivery of information and
9
chapter
01
Source Market Signal

Gartner 26 billion connected devices10
Frost & Sullivan Connected devices amounting to 40 billion connected “things”11
IDC 28.11 billion of IoT units installed12
Cisco13 & Ericsson14 50 billion devices
GSMA 25.7 billion connected devices; 10.8 billion mobile connected devices15
GSMA 880 million unique subscribers16
UTMS Forum Global mobile subscription reach 9.7 billion17
Table 1.2: Markets signals for IoT
living and work spheres. The readiness of The applications of IoT can be segmented into
IPv6 will be key to drive the proliferation of two perspectives; enterprise and end users, as
IoT-enabled things across industry-specific summarised in Table 1.3.
activities. With the diminishing cost of
devices driving the revolution of sensors
1.5.1 Market potential for IoT
and connected things, data capturing
will no longer be restricted by location or IoT opportunities are multifaceted and by
limited to a single dimension. The data 2020, Gartner forecasts that 26 billion units of
collection process can be scaled and multi- connected devices will deliver an overall global
dimensional variables can be captured economic value add of US$1.9 trillion, of which
simultaneously within a given environment. 80 percent will be derived from services19,
while IDC estimates US$7.1 trillion within
1.5 opportunitIES IN IOT the context of the IoT ecosystem, including
intelligent and embedded system shipments,
Universally, IoT is expected to transform our connectivity services, infrastructure, purpose-
lives, enabling horizontalised and verticalised built IoT platforms, applications, security,
applications across a wide spectrum of vertical analytics, and professional services20.
markets and spur the growth of technologies.
Enterprise Perspective End User Perspective

Optimisation of resources for operational Availability of excellent devices with user-friendly interfaces, location and
efficiency, improved availability and increased contextual-based applications with minimal learning curves to empower
yield. individuals. Gartner forecasts by 2017, 80 percent of consumers self-collect
and track their personal information and are willing to “trade” for greater
cost saving, convenience and personalised services18.
Table 1.3: IoT opportunities

10 chapter
01
Cisco highlights a “value at stake” (potential changes to achieve it. Crowdsourcing will
bottom line value that can be created) be such a win-win situation and yield many
generated by IoT amounting to US$14.4 trillion benefits for all stakeholders within the
over a 10-year period from 2013 to 202221, value chain.
driven by five key areas of transformation;
iii. Proactive. Proactive enterprises, which
specifically, asset utilisation (US$2.5 trillion);
are continuously aware of possibilities that
employee productivity (US$2.5 trillion); supply
abound in relevant business contexts – and
chain and logistics (US$2.7 trillion); customer
optimise their resources to achieve what
experience enhancement (US$3.7 trillion); and
“should be the best action”, are emerging.
innovation (US$3.0 trillion).
In order to move forward and stay ahead
of the competition, enterprise operations
1.5.2 Value creation in IoT are shifted from being reactive-oriented,
which is event-triggered, to a proactive
The potential of IoT towards enhancing human mode. Enterprises will be able to mitigate
well-being is significant. For individuals, IoT or eliminate undesired future events or
value creation focuses on 5Ps: conditions, or to identify and take advantage
of future opportunities, by using prediction
i. Personalisation. Each person is genetically and automated decision-making methods
and physically unique and must be proactively, thus enabling continuous
considered as a unique individual — not monitoring of the need for service
as a statistical average. Individuals should adaptation and propose corresponding
be empowered to determine what suits changes in an automatic way.
them perfectly. Premised on this value,
the concept of a quantified self emerges, iv. Prescriptive. Enterprises always strive to
where individuals track data about their improve customer care and reduce overall
body and conduct their own personal operation costs; therefore they consistently
monitoring, and investigate and research look out for technologies which can
their bodies, minds, selves and indulge in address both needs by enabling real-time
self-experience. communication and access to data from
remote locations and devices. Machine data
ii. Participatory. Each individual will have collected from connected things will be
greater stakes in all products and services unleashed and the value that the data can
they consume. Therefore, instead of being provide will be unlocked through massive
passive receivers at the end of a value “historical events” processing and iterative
chain, characteristics of pre-IoT era, analysis of the system.
activated and networked consumers will
demand more effective service delivery – v. Productivity. Enterprises must be equipped
where they will help lead the necessary with situational awareness and real-time
11
chapter
01
market information transmission to relieve centre stage. Figure 1.4 depicts an overview
the demands on operation and field forces of the IoT evolution path that is gaining
that would increase industry efficiency and ground; from the introductory stage of wired
improve response times. Connecting all and wireless communication for machine-
things strategically enables enterprises to to-machine, which later goes through the
drive not only reductions in service cost and harmonisation of technology protocols, which
improved service levels, but through the is the tipping point for IoT to march into the
analysis of machine data, it also improves development stage.
business decisions, product design and
manufacturing processes. With more granular data being collected
through the integration of technologies,
1.5.3 IoT maturity level harmonisation of information technologies
is critical to integrate multifaceted data and
Since its introduction by Kevin Ashton in information, where IoT transits to the growth
1998, the concept of the Internet of Things stage. In the growth stage, IoT proliferates
has come a long way and now has taken through consumerisation. With IoT,
Insertion of tacit
knowldege
Value Creation
Information
harmonisation
Technology
protocols Internet of
harmonisation Services
Commercialisation
of IoT
Process
Evolution of M2M transformation Legend:
for productivity Enabler
improvement Inflection point
Time
Introductory Development Growth Maturity

Figure 1.4: Overall of IoT evolution
12 chapter
01
technology advancement enables the insertion energy, water, transportation, buildings and
of tacit knowledge leading to the unleashing government. Frost & Sullivan predicts that smart
of greater opportunities. This is where a cities or connected cities will contribute the
paradigm shift happens – from the provision of largest percentage to the overall economy at 54
products to the provision of services – where percent, with an estimated market potential of
individuals no longer purchase products for US$392.94 billion22. Eighty-four percent of the
utilitarian purposes, but will subscribe to initiatives are led by five countries including the
services without owning any product. United States, European countries, Japan, China
and Korea23. Other countries including India,
Australia, South Africa, Canada and Singapore
1.6 Global IoT implementationS
are also now moving towards building digital and
Across the world, a majority of countries are connected infrastructures.
envisioning smart city initiatives that focus on
Canada: Europe: Europe & Japan: Russia:

• Started in 2010: i-CANADA • Started in 2011 • Started in 2013 • 2020 target: US$980M
• Healthcare, TeleWork, • Smart Cities & Community • ClouT: Joint European-Japanese • Vehicles, smart parking, smart Korea:
e-commerce, education & • Cognitive IoT ICT project for smart cities cities’ payment terminals, • Started in 2003
government • Smart objects devices and sensors • Smart city & smart government
• Public Sector • Smart transportation • 2014: 5G network technology
• Smart City (intelligent networks)
Japan:
• Started in 2010
• Home energy management:
Yokohama city, Kansai Science
City & Kitakyushu city
• Transport: Toyota City
• Applications: Vending machines,
transportation management,
surveillance & e-wallet services
USA:
• Started in 2010: SmartAmerica China:
• Areas: Manufacturing, • Started in 2005
healthcare, energy, • Traffic systems & IoT
transportation & disaster • 2011: Food safety & healthcare in
response, government, remote & rural areas
aeronautics & social media
Australia:
South Africa:
• Started in 2010
• Started in 2010
India: • Renewable energy & electric
• IoTEG (IoT Egineering Group),
• Started in 2010 Singapore: vehicles
CSIR Meraka
• Areas: Water, energy & • Started in 2013 • Healthcare, government &
• Applications: Connected devices,
waste resource efficiencies, • Areas: Wireless technology, smart infrastructure
energy efficiency, enabling smart
environments environmental governance products & smart nation
Figure 1.5: Global IoT initiatives indicating the starting of each inititiave with respective focus areas (Note: This is a non-exhaustive scenario)
13
chapter
01
By the end of this decade, billions of devices will Several strategic alliances have been
become smarter and will significantly improve established among industry players which
the way we do things. Into the 2020s, Frost & further intensify the development of IoT
Sullivan forecasts the market potential for total globally. This phenomenon highlights that the
“connected living” to reach US$731 billion24. wave of IoT will not be a single-player game
nor will it be dominated by a single technology.
Tens of millions of people will be connected by In capitalising on IoT opportunities, end-to-
trillions of things and applications as a result end solutions and collaborations are critical.
of the “connected things” industries. Figure 1.5
provides an overview of global IoT initiatives in For Malaysia, there are also pockets of IoT-
different spots around the world while Appendix related activities and initiatives in place to
2 provides the details of the implementations. kick-start the National IoT Strategic Roadmap
(refer to Appendix 3).
Strategic Alliance Players Objective

Open Samsung, Intel and Dell • Solve the challenge of interoperable connectivity for IoT without tying
Interconnect the ecosystem to one company’s solution
Consortium • Establish a single solution that covers interoperability across
(OIC)25 multiple vertical markets and will work on various OSes
[July 2014]
Smart City Cisco Systems and AGT • Cost-effective and efficient delivery of services that enhance the daily
Global Strategic International lives of citizens and improve urban services – from transportation
Alliance26 and healthcare to utilities, infrastructure, disaster preparedness and
[Feb 2014] personal safety.
Industrial AT&T, Cisco Systems, • Coordinate the development of common architectures and platforms
Internet General Electric, IBM, Intel, for the widespread enablement of the Industrial Internet.
Consortium27 Ei328
[Jan 2014]
AllSeen Alliance29 51 members • Fast-track the development of device-to-device communication.
[Dec 2013] • To drive the widespread adoption of connected products that support
an open, universal development framework based on the AllJoyn™
open source project.
Global M2M TeliaSonera, Orange, • Offer enhanced quality of service, M2M roaming services and
Association Deutsche Telekom and interoperability.
(GMA)30 Telecom Italia
[July 2012]
M2M World NTT DoCoMo, SingTel, • Deploy seamless international M2M solutions through a single point
Alliance31 Telstra, Etisalat, Telefonica, of contact.
KPN and Rogers
Table 1.4: Strategic alliances in IoT

14 chapter
01
With the complexity of IoT, the formation interlocking fundamental elements that
of consortia is necessary to address the have profound impact on human needs in
rise and success of the technology. Formed different spectrums; the trends provide
by industry leaders, the consortia will lenses to project a shift in the way people
facilitate devices and systems to securely think and consequently act, which in turn will
and reliably interconnect, and ensure chart the way forward for Information and
optimum interoperability, agility and security Communications Technology (ICT) industry.
in information sharing. Table 1.4 lists the
features of several recent establishments of Coupled with advancements in the Internet and
strategic alliances in IoT. other communication technologies, convergence
and interactions of the megatrends will be
manifested in various forms in different market
1.7 Market analysis
spaces; under the influence of a global nexus
The four aforementioned prominent of forces. This provides a perspective on ICT
megatrends are the significant and in its bid to offer values of Personalisation,
Demographic Individual Food, Energy & Diffusion of

Characteristics
Shift Empowerment Water Nexus Power

• Aging society • Growth of global • Scarcity of natural • Diminishing of
• Urbanisation & middle class resources monopoly
migration • Higher education • Competitive demand • Highly connected &
• Rise of women level for natural resources networked society
power
Implications
• High competition for • Personalisation of • Sharing of resources • Transparent society/

shelter & security products & services • Demand for market
• Demand for productivity & • Consumerisation of
healthcare & better efficiency ICT
nutrition • Zero waste
Shift in market Personalisation Management Transparencies

& demand on common of limited & understanding
structure collaborative resources WHY
platforms
Personalisation Participatory Proactive Prescriptive Productivity

• Address individual • Multi-party • Ability to predict • Understand WHY • Efficiency &
needs & preferences collaboration • Manage situations sustainability
• Customisation
Figure 1.6: Global nexus of megatrend implications to human needs and advancement
15
chapter
01
Participatory, Proactive, Prescriptive and and workforces to develop the capabilities they
Productivity (refer to Figure 1.6). need to manufacture new products, to enter
new markets, and to move up the value ladder.
The nexus of megatrends pressures industries With an increasingly diverse range of devices
to recognise the paradigm shift and warrants and communication streams that leverage the
their attention to make a qualitative leapfrog vast potential of data, the roles of individuals
from passive to proactive, and product- can be extended with IoT.
centric to value-creation orientation towards
sustainable growth. The global nexus of The convergence of things, rich data
megatrends also empowers individuals’ active generated from things, knowledge availability
participation in the process of value creation and autonomy by IoT solutions drive demand
and enables self-management and self- – individuals and the business community are
sufficiency. Future transformation will most racing to boost their intelligence, efficacy and
likely not resemble that of yesteryears’, as the productivity to enhance customers’ confidence
whole ecosystem will be very different. IoT and quality of life.
will be the core enabler in facilitating firms
Endnotes
1 Leon, A. (2008). Internet of Things + Internet of Services. at: http://www.theguardian.com/sustainable-business/
TELEFÓNICA I+D. Available at: http://www.future- feeding-world-nine-billion-population
internet.eu/fileadmin/documents/madrid_documents/ 8 Connor, S. (2011). 2.4 billion extra people, no more land:
FISO/3b._Internet_of_Services_and_Internet_of_Things_ how will we feed the world in 2050? The Independent.
Panel_-_Telefonica.pdf Available at: http://www.independent.co.uk/news/
2 Hancock, Tim. (2012). The Future. Global Futures and science/24-billion-extra-people-no-more-land-how-will-
Foresight. Available at: http://www.steria.com/fileadmin/ we-feed-the-world-in-2050-2191260.html
com/sharingOurViews/publications/files/Steria_Future_ 9 Internet Live Stats (http://www.internetlivestats.com/
Report_2012.pdf internet-users)
3 Ibid. 10 Gartner. (2014). Gartner Says the Internet of Things Will
4 ODEC. (2012). OECD Environmental Outlook to 2050: The Transform the Data Center. Available at: http://www.
Consequences of Inaction. Available at: http://www.oecd. gartner.com/newsroom/id/2684616
org/env/indicators-modelling-outlooks/49846090.pdf 11 Nath, P. (2014). Internet of Things & Connected
5 Frost & Sullivan (2010). Mega trends shape future of the Industries: Driving New Applications. Frost & Sullivan
World. 12 Anderson, C. R. (2014). The internet of Things: The
6 Hancock, Tim. (2012). The Future. Global Futures and possibilities are endless, but how will we get there?. IDC
Foresight. Available at: http://www.steria.com/fileadmin/ APeJ Internet of Things Web Conference on 19 June 2014.
com/sharingOurViews/publications/files/Steria_Future_ 13 Bradley, J., Barbier, J., & Handler, D. (2013). Embracing
Report_2012.pdf the Internet of Everything to capture your share of $14.4
7 Purt, J. (2012). Feeding the world: how on earth can trillion. Cisco.
we feed nine billion people? The Guardian. Available
16 chapter
01
14 Higginbotham, S. (2011). Ericsson CEO Predicts 50 23 Korea Bizwire. (2014). China Is Betting Big on IoT and
Billion Internet Connected Devices by 2020. Ericsson. Smart City Projects. Available at: http://koreabizwire.
Available at: http://gigaom.com/2010/04/14/ericsson- com/kobiz-feature-chinese-government-gets-serious-
sees-the-internet-of-things-by-2020/ about-smart-city-programs (retrieved 3 July 2014)
15 GSMA Intelligence. (2014). The Mobile Economy 2014. 24 Peter, R. (2014). Market potential of US$731b in
GSMA. Available at: http://www.gsmamobileeconomy. connected living by 2020. Frost & Sullivan. Available
com/GSMA_ME_Report_2014_R2_WEB.pdf at: http://www.marketingmag.com.au/news/market-
16 Ibid. potential-of-us731b-in-connected-living-by-2020-frost-
sullivan-53040/ (retrieved 3 July 2014)
17 IDATE (2011). Mobile traffic forecasts 2010-2020. UMTS
Forum, Jan 2011. Available at: http://groups.itu.int/ 25 Chowdhry, A. (2014). Samsung, Intel and Dell Launch
Portals/17/SG5/WP5D/2-3%20UMTS%20Forum%20 ‘Internet Of Things’ Consortium. Forbes. Available at:
presentation%20at%20IMT-%20WS%20at%20AWG%20 http://www.forbes.com/sites/amitchowdhry/2014/07/09/
210311_final_v1.pdf samsung-intel-and-dell-launch-internet-of-things-
consortium/
18 Marshall, R. (2013) Gartner’s Top 10 strategic
predictions: A Disruptive & constructive IT future. 26 AGT International. (2014). Cisco and AGT Form a Smart
Gartner. City Global Strategic Alliance to Transform the Way Cities
Are Managed and Secured. CISCO. Available at: https://
19 Prentice, S. (2014). “The Five SMART Technologies to www.agtinternational.com/press/cisco-and-agt-form-a-
Watch”, Gartner (G00259931). smart-city-global-strategic-alliance-to-transform-the-
20 Firstbiz Staff. (2014). The Internet of Things buzz gets way-cities-are-managed-and-secured/
real: Global mkt forecast to exceed $ 7 trillion by 2020. 27 Internet Industry Consortium (http://www.iiconsortium.
FirstPost. Available at: http://firstbiz.firstpost.com/ org/)
biztech/internet-things-buzz-gets-real-global-mkt-
forecast-exceed-7-trillion-2020-87031.html (Retrieved 14 28 Geek News Desk. (2014). Ei3 Joins the Industrial Internet
July 2014) Consortium. Wisdom Digital Media. Available at: http://
www.broadwayworld.com/bwwgeeks/article/Ei3-Joins-
21 Bradley, J., Barbier, J., & Handler, D. (2013). Embracing the-Industrial-Internet-Consortium-20140715#
the Internet of Everything to capture your share of $14.4
trillion. Cisco. 29 Allseen Alliance (https://allseenalliance.org/about/
mission)
22 Peter, R. (2014). Market potential of US$731b in
connected living by 2020. Frost & Sullivan. Available 30 Global M2M Association (http://www.
at: http://www.marketingmag.com.au/news/market- globalm2massociation.com/why-the-gma/)
potential-of-us731b-in-connected-living-by-2020-frost- 31 M2M World Alliance (http://www.m2mworldalliance.
sullivan-53040/ (retrieved 3 July 2014) com/#section_advantages)
National IoT Implementation Plan
17
chapter
03
chapter 02
Where We Are
18 chapter
02
chapter 02
Where We Are
2.1 Malaysia is ready for IoT 2.1). Telecommunication services remains

dominant in local ICT spending in coming
2.1.1 Malaysia’s demand factors years, with the content sector’s projected
above average CAGR at 10.1 percent. This
Generally, Malaysia has an encouraging positive growth of domestic consumption
environment and a strong starting point provides opportunities to showcase local
to foster and spur IoT within the domestic technologies and innovations.
market, proven by the following evidence:
176.9
i. Mobile penetration per 100 inhabitants
27.5
in Malaysia is beyond 100 percent and
clocked at 143.7 percent1 in Q1 2014, and 16.7
multi-handset ownership is observed 118.6 23.7
ii. 65.8 percent of Malaysians are Internet 17.0

22.9
users2 80.8
11.3
16.1
iii. Relatively active online behaviour where 11.6

7.7
15.6
59 percent of Malaysian Internet users 11.0
10.6 86.1
download mobile apps compared to the
Southeast Asian average at 67 percent3 39.9
58.6
iv. Annually, Malaysians spend an average of

US$2,000 on online purchases4 2010 2015 2020
v. Close to one in every two Malaysians are TELECOM HARDWARE SOFTWARE SERVICES CONTENT
active in social networking and lead to 45
percent social penetration5 Figure 2.1: Domestic ICT spending (RM billion)
Source: Frost & Sullivan6
Domestic ICT consumption is projected at
RM118.6 billion in 2015 and will register
RM176.9 billion by 2020, with a compound The aforementioned key Internet and mobile
annual growth rate (CAGR) of 8.32 percent indicators, in addition to domestic ICT
between 2015 and 2020 (refer to Figure spending, reveal demand factor conditions in
Where We Are
19
chapter
02
Impact of IoT
Today
(2025)
Mobile device penetration 143.7% 280%
Internet users 65.8% 195%
Mobile broadband penetration

13.34% 167%
Social network penetration 45% 135%
Mobile services (US$) 8B 16B
Figure 2.2: IoT-accelerated Internet usage Source: Gartner, Frost & Sullivan
Malaysia which is encouraging and amicable 2.1.2 IoT opportunities in Malaysia

for IoT to take place.
It is forecasted that the initial IoT potential
Worldwide, the number of Internet-connected in Malaysia will register RM9.5 billion
devices had surpassed the number of human
RM190.7B
beings in 2011, and by 2020, Internet-
connected devices are expected to number RM42.5B
between 26 billion and 50 billion7. In the case

RM110.7B
of IoT, people will not just be interacting RM9.5B
RM37.5B
with other people and things, but the things RM26.0B

themselves will also interact with one RM72.4B
another. With the increasing use of mobile RM62.1B

devices and wider penetration of the Internet,
Malaysia will become fertile ground for IoT Traditional ICT spending
IoT spending
implementation. Following this, the Malaysian
digital landscape will grow exponentially, as 2013 2015 2020 2025
depicted in Figure 2.2. Figure 2.3: Malaysia IoT opportunities (2020-2025)
Source : Gartner and Frost & Sullivan

20 chapter
02
in 2025, compared to RM7.5 billion for

IoT
2020. Second to application and services,
and analytics technologies is the revenue
generated by device producers which is
projected at RM4.3 billion (refer to Figure 2.5).
ICT
Besides delivering financial impact to the

nation, the poential of IoT can serve as a
Traditional ICT
spending good platform for the research community
IoT spending to commercialise R&D outputs. As of
2013 2020 2022 2024 2026 2028 2030 2032 2012, there are 1469 potential patents from
Malaysia which can be licensed to investors
Figure 2.4: Malaysia IoT spending will surpass traditional to enhance the competitiveness of their IoT
ICT market by 2025
applications and services.
by 2020, which tops up values on the
traditional ICT industry and leverages on Furthermore, the growth of IoT in the Malaysian
existing economic initiatives such as the market is projected to generate a total of 14,270
Economic Transformation Programme (ETP), high-skilled employment opportunities by 2020.
Government Transformation Programme Entrepreneurs who create unique value on top
(GTP), Digital Malaysia (DM) and Digital of commodity hardware, connectivity and cloud
Lifestyle Malaysia (DLM). Supported by services will reap profits in IoT. The demand
continuous promotional campaigns and for IoT technology will not come from a single
strengthened by market value appreciation, killer app, but from thousands of unexpected
IoT in Malaysia is expected to experience new use cases by solution developers who pull
exponential growth beyond 2020 and reach intelligence from data which is fundamental in
RM42.5 billion in 2025 (refer to Figure 2.3). making IoT a big, profitable market10.
IoT growth will outmanoeuvre the traditional
ICT market by 2025 and subsequently reshape
2.2 Environmental scan
Internet usage behaviour and generate
Internet growth in Malaysia (refer to Figure In a nutshell, Malaysia is blessed with
2.4). This is assuming that the IoT growth rate favourable conditions to participate in IoT.
in the Asia Pacific region at 34.1 percent8. However, for Malaysia to advance in this
emerging market, there are several critical
Technology opportunities that can be created areas that should be driven further, which have
by IoT in Malaysia are concentrated in been identified as follows (refer to Table 2.1):
applications and services, and analytical-
related technologies, with forecast technology • To assess the root causes to Malaysia’s
opportunities amounting to RM34 billion innovation paradox
Where We Are
21
chapter
02
Global Scenario Malaysia Scenario

2020 2020 2025
Layer 5: Analytics % of IoT

RM890
Billion
Layer 4: Apps & Services 80% RM7.5B RM34.0B
Layer 3: Computing & RM61

5% RM0.5B RM2.1B
Storage Billion
Layer 2: Communications RM58

5% RM0.5B RM2.1B
& Networking Billion
Layer 1: Things:
RM105
Hardware, Power & 10% RM1.0B RM4.3B
Billion
Protocols
Figure 2.5: IoT technology opportunities Source: Gartner (2014)
• To promote market-driven policies to Generally, four thematic challenges are

enable innovation acknowledged by various stakeholders of the
ecosystem, specifically:
• To develop funding instruments to support
innovation initiatives
2.3.1 Infrastructure
• To establish linkages across industries and
public research institutes Infrastructure is the catalyst to reach an
• To foster a vibrant innovation culture and interoperable, trustable, mobile, distributed,
outstanding human capital valuable and powerful enabler for emerging
applications such as smart cities, smart grid,
smart buildings, smart homes, intelligent
2.3 Challenges
transport systems, and ubiquitous healthcare,
While acknowledging the advantages of IoT to name a few. The massiveness of sensors
technology convergence, several challenges and smart things to be connected to the
should be addressed in order to facilitate the Internet will pressure the spectrum and
capturing of new competencies, capacities and availability of IPv6.
market opportunities by Malaysian industry
players so that a higher growth rate in IoT can Herein, the presence of smart objects in the
be achieved. Internet realm and people living in a connected
22 chapter
02
Factor Strengths Weaknesses

Technology • Well-established mobile operators and five • Technology complexity
operators licensed to provide 3G services • Legacy systems
• Security and privacy concerns
• Data accessibility and knowledge sharing
availability
Resource • Creation of new MSC cybercities and • Fragmented funding instruments unable to
cybercentres generate required impact
• SMEs as source of endogenous growth and • Barriers to free market competition exist
innovation
• E&E industry is leading in terms of
investment, industrial output, value add,
exports and employment
Societal • High phone and Internet penetration rates • Rural adoption and adaptation fear - technology
• Sophisticated consumers are eager to use phobia
mobile data and value-added services
Political • Various incentives like pioneer status, tax • Dedicated performance management entity
exemptions and allowances to promote ICT exists to monitor and drive performance of
investment innovation initiatives
• Intellectual property protection and cyberlaws • Broken linkages across industry and public RIs
• Multiple public agencies working in silos on
innovation initiatives
Table 2.1: Environmental scan
world will pose new challenges to existing market opportunity for cloud providers
IPv6 deployments. IoT’s needs for connectivity, for processing power, storage and
reliability, security and mobility will accelerate interconnectedness. Cloud technology needs
and propagate the use of IPv6, which is to synergise with all thing-generated data
considered an essential technology for IoT, as it by filtering, analysing, storing and accessing
offers scalability, flexibility; and tested, extended, information in useful ways. Therefore,
ubiquitous, open, and end-to-end connectivity11. exploiting the true potential of the interface
between mobile, cloud and smart objects with
For infrastructure, “enabling all things” infers sensors will elevate the market space for cloud
that devices and objects can communicate computing to further capitalise on.
and interact with each other, but they may
have several physical constraints in terms 2.3.2 Data and information
of memory capacity, computation capability,
energy autonomy, and communication With the vastness of things connected to the
capabilities. This generates the next great Internet, individuals and businesses will be
Where We Are
23
chapter
02
able to collect more detailed information. further utilise. The ability to see the value of the
The Web of Things will expand the types and data is important. Analytics-enabled data is one
quantity of data collected, gathering everything of the solutions sought after for use by IoT.
from location information to demographic,
psychographic and social details.
2.3.3 Security and privacy
The proliferation of sensors will facilitate self- Connected devices can communicate with
tracking data which is outside the mainstream consumers, transmit data back to companies,
and traditional data collection manner. Self- and compile data for third parties such as
tracking data can provide better measures of researchers, healthcare providers, or even
everyday behaviours and lifestyles, and can fill other consumers.
in the gaps for existing high quality traditional
data collection. Therefore, it is critical to Findings from TRUSTe Internet of Things
aggregate and manage self-tracking data for Privacy Index reveals that UK consumers’
knowledge advancement. comfort levels varied widely depending
on responsibility, ownership and usage of
The trend for data sharing and self-tracking collected personal data. Privacy and security
data for greater public good (such as those concerns along the information supply chain
done by the Quantified Self movement) will be a potential barrier to the growth of the
extends to opening up personal data to see IoT market as only 18 percent of respondents
what insights others might see in them. agreed that the benefits of smart devices
Several key issues have emerged, which outweighed any privacy concerns13.
revolves around the importance of trust in
establishing the ecosystem that will support
individuals donating their data for public 2.3.4 Talent
research. Specific issues include privacy
related to personal data and data sharing12. The biggest challenge in materialising the
greater benefits of IoT is the human factor,
With so much data flowing in from potentially where the capabilities of industry players in
millions of different sensors and things, the swiftly creating new and differentiated products
diversity and precision of the knowledge about will be a primary determinant of their success.
the world will reach a new level never before
imagined. The challenge then is in the viewing Human capital challenges can be segmented
and management of the enormous and wildly- into two broad categories, namely strategic
varied data. As of today, there are already issues (e.g. programmes to cultivate
deployments of big data technologies to find success stories of IoT deployment) and
value in the data exhaust – those that can be tactical issues (e.g. identifying pools of IoT
quickly ingested and analysed for enterprises to talent, attracting talent participations in IoT,
24 chapter
02
and identifying niche areas to attract talent coordination across multiple stakeholder
across different disciplines). groups in the innovation ecosystem.
2.3.5 Ecosystem 2.4 Drivers/Enablers
“Things” (for example, everyday objects, The technology routes for IoT realisation include:
environments, vehicles, healthcare
instruments and clothing) will have more i. Interoperability: Internetworking of
and more information associated with them, heterogeneous networks
and are beginning to sense, communicate, ii. Security and privacy: Integration of
network and produce new information, and security and privacy protection
are becoming an integral part of the Internet.
Value-added services using IoT could reach iii. Quality of service: Secure and reliable
£200 billion a year worldwide14, with new real-time network infrastructure
business models, applications and services iv. Data and information: Analytical
developing across different sectors of the opportunities arising from massive
economy. These will also stimulate innovation streams of potential real-time information
and growth in areas such as components,
devices, wireless connectivity, system v. Multi-sensory super-web: Ability to access
integration and decision-support tools. the world’s entire stock of information,
communication, learning, entertainment
The full economic potential of IoT has and leisure activities in full sensory glory,
been held back by systemic issues such as hence an increased, easier and more open
fragmentation and barriers to application and availability of data from “things”
service development at scale. The challenge vi. Access: Easy and harmonised access to data
is in the formation of an ecosystem for IoT to across organisations and sectors, enabling
unlock new markets and help Malaysia to gain greater innovation and development at scale
a competitive advantage in the technology.
vii. Research and development:
The current scenario is such where multiple Experimentation and innovation in
public agencies work in silos on research applications and services, and testing
initiatives and funding mechanisms, of business and user models, in order
subsequently having multiple strategic to increase adoption, build investment
focuses with limited resources. The lack of a propositions and value realisation
common direction make the initiatives unable
to generate the required impact. A lead agency From stakeholders’ perspectives, the key
on IoT is the turnkey to drive coherence and enablers of IoT can be described as follows:
Where We Are
25
chapter
02
i. A market-savvy and influential national centre SMEs into the value chain of larger
of excellence is needed to play a proactive players, and to project these startups
role in orchestrating efforts in ramping up the and SMEs as credible service
nation’s IoT agenda such as by: providers in the market.
a. Creating incentives and opportunities ii. SMEs – known for their ability to “leapfrog”
for local industry players to participate technology innovation due to their
and collaborate with MNCs. The centre unencumbered organisation structure
should promote private-public R&D and speed of decision making. SMEs
partnerships and push for competitive are critical IoT enablers on account of
corporate tax incentives focused on their competent managerial capacities
specific sectors. and technical know-how in enabling
technology diffusion.
b. Establishing a cooperative framework
to tie up technology SMEs with iii. Funding – while not a silver bullet, it is
leading MNCs. Such tie-ups are a critical public sector tool to accelerate
invaluable to integrate startups and IoT development.
Strengths Weaknesses
• Demand factors: Mobile penetration of 143.7 percent; • Fragmented funding instruments
65.8 percent of population are Internet users; active • Rural adoption and adaptation fear - technology
online behaviours phobia
• E&E industry advancements (investment, industrial • Broken industry-public RIs - academia linkages
output, value add, exports and employment)
• Silo innovation initiatives
• Premiere ICT as economic sectors in various
government inititiatives • Talent competencies
• Strong SME base as source of endogenous growth • Legacy systems
and innovation • Data accessibility
• IP protection • Knowledge sharing availability
• Well-established mobile operators
Opportunities Threats
• Sophisticated consumers • Security and privacy challenges
• Technology complexity • Data governance policies
• Innovation initiatives • Regional Smart City/Smart Nation initiatives
• Strong market potential in Asia Pacific region with
34.1 percent growth rate
Figure 2.6: SWOT analysis for realising IoT in Malaysia

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2.5 Gap analysis • Develop an IoT standard-compliant

ecosystem to reduce the cost of
In a nutshell, the SWOT analysis (refer to development and foster execution
Figure 2.6) highlights the strengths that
Malaysia should focus on, opportunities that • Support standardisation initiatives across
should be optimised, as well as weaknesses different technology layers
and threats that may constrain the growth • Initiate cross-industry fertilisation to
of IoT and subsequently frustrate the address niche markets and deliver full-
participation of industry players. service strategies
To capitalise on the huge potential of IoT, • Expand the roles of ecosystem members
Malaysia needs to embed success factors and by leveraging their respective proven
a proper execution plan. The following list core competencies such as partnerships,
briefly highlights recommendations to realise device compliance, network deployment,
IoT in Malaysia: commissioning and maintenance, end-to-
end system integration
Endnotes
1 Communications and multimedia pocket book of 10 Asay, M. (2014). The internet of Things need millions
Statistics, Q1 2014. MCMC of Developers by 2020. Say Media, Inc. Available at:
2 Ibid. http://readwrite.com/2014/06/27/internet-of-things-
developers-jobs-opportunity
3 The Mobile Internet Consumer - Malaysia 2013. MMA
and Vserv.mobi 11 Jara, A.J., Ladid, L. and Skarmeta. A. The Internet of
Everything through IPv6: An Analysis of Challenges,
4 Ondevice research. Mobile Malaysia, Ahead of the pack. Solutions and Opportunities. Journal of Wireless Mobile
5 Ibid. Networks, Ubiquitous Computing, and Dependable
6 Frost & Sullivan. (2012). Review of National ICT Strategic Applications, volume: 4, number: 3, pp. 97-118.
Roadmap & Technology roadmaps, 2012. Ministry of 12 Robert Wood Johnson Foundation. (2014). Personal
Science, Technology and Innovation (MOSTI) Data for the Public Good. New opportunities to enrich
7 Technology and Communications Research Team. understanding of Individual and population health.
(2014). The Internet of Things. A Study in Hype, Reality, Health Data Exploration Project. Calitz, UC Irvine and
Disruption, and Growth. Raymond James and Associates, UC San Diego. Available at: http://www.rwjf.org/content/
Inc.. dam/farm/reports/reports/2014/rwjf411080
8 (2014). IoT to be fastest-growing IT segment in 13 Davies, J. (2014). “Internet of Things crisis? Privacy
APAC. Digital News Asia. Available at: http://www. issues could be barrier to smart-device take-up, says
digitalnewsasia.com/enterprise/iot-to-be-fastest- Ipsos Mori report”. Available at: http://www.thedrum.
growing-it-segment-in-apac-frost com/news/2014/05/29/internet-things-crisis-privacy-
issues-could-be-barrier-smart-device-take-says-ipsos
9 Frost & Sullivan. (2012). Review of National ICT Strategic
Roadmap & Technology roadmaps, 2012. Ministry of 14 Technology Strategy Board. (2011). “Internet of Things
Science, Technology and Innovation (MOSTI) convergence: Competition for funding of preparatory studies”
What We Want to Achieve
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chapter 03
What We Want to
Achieve
28 chapter
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chapter 03
What We Want to
Achieve
The overriding objective in realising the value 3.1.1 Mission elements

of IoT is to position Malaysia as a key player on
the world map while enabling inclusiveness The mission comprises the following elements:
of benefit distribution to Malaysians through
locally-engaged, nationally-relevant and • Developing and sustaining a globally-
internationally-recognised initiatives. competitive IoT industry with capabilities,
innovations and values surpassing those of
regional competitors
3.1 Vision AND Mission
• Enabling strategic collaborations and
The vision and mission are formulated sustaining productive partnerships
to provide a clear strategy and common
• Facilitating the industry in developing and
direction for the implementation and growth
deploying cost-effective IoT technologies
of IoT initiatives in Malaysia. It serves as
a guide and declaration of purpose for • Attracting, developing and retaining
Malaysia to work in a synergistic manner leading edge skills in IoT technologies and
that will lead it to be the Premier Regional elevating small and medium enterprises to
IoT Development Hub and make IoT a new the next level in the IoT space
source of growth, subsequently creating
job opportunities and be the catalyst and • Strengthening the industry’s capacity to
energiser for all stakeholders. sustain robust economic performance
3.1.2 Market implications

VISION
Malaysia to be the Premier It is worthwhile to look at how IoT is
Regional IoT Development Hub changing the terrain in all walks of life.
IoT will make possible for everybody and
everything to be connected at all times,
MISSION and receive and process information in
To create a national IoT ecosystem real-time. The result will be new ways of
to enable the proliferation of use making decisions, backed by the availability
of meaningful information. The emergence
and industrialisation of IoT as a of a new generation of consumers through
new source of economic growth the option of being connected and traceable
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at all times, will demand new products that are built on ICT and IoT technologies. By
and services based on ubiquity and aligning all efforts in the ecosystem, Malaysian
interconnection, leading to increasingly open companies will become prime players in both
and collaborative business models. local and global IoT business ecosystems.
The impact of IoT on all stakeholders, ranging To achieve the aforementioned mission and
from the Government, business community fulfil the vision, this document proposes three
and society at large will be multifaceted. IoT strategic goals as the main breakthrough targets
promises numerous benefits to the general for Malaysia as a key global player in IoT.
public such as:
3.2.1 GOAL 1: Create a conducive IoT industry
• Increasing economic efficiency and ecosystem
productivity through the automation and
prescription of activities An ecosystem conducive to new ideas, innovation
• Reducing risks of the environment through and collaboration is imperative to ensure an
real-time sensing and providing “just-in- effective implementation of IoT. The goal is to
time” information identify all possible significant roadblocks, and
formulate strategies to provide assistance and
• Facilitating the Government in developing coordination to facilitate the development and
better infrastructure and in utility planning, growth of IoT. Correspondingly, to ensure all
and monitoring and management through facets of IoT-supporting facilities and systems
data augmentation remain healthy, vibrant and are able to effectively
• Enhancing knowledge by enabling people support the needs of the industry, key strategies
to understand and monitor previously to achieve the goals are identified as follows:
inaccessible domains through the
• To formulate an interoperability framework that
availability and visibility of information in
harmonises the heterogeneity and complexity
every aspect throughout the world
of standards and technologies to enable fast
development and deployment of IoT
3.2 Goals of THE Malaysia IoT Strategic
Roadmap • To institute a centralised regulatory and
certification body to address privacy, security,
The goals of the Malaysia IoT Strategic Roadmap quality and standardisation concerns
are to integrate all efforts from various
• To establish strategic collaborations
stakeholders in Malaysia to focus on areas of
between MNCs and local players to foster
identified significant value creation. The initiative
the development, diffusion and adoption of
aims to create the foundation for the success of
IoT technologies
the Malaysian ICT industry and other industries
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3.2.2 GOAL 2: Strengthen technopreneur solutions, equipped with supporting

capabilities in the Applications and Services services and facilities such as for
layer interoperability testing and development of
IoT products and services
Sustainability is a function of an industry’s
• To leverage on the local market’s complex
competitiveness, of which talent is one of the
characteristics as a demonstrator of
key contributing factors. By building on the
cutting-edge IoT technologies and position
necessary competencies and capabilities,
Malaysia to be promoted as a “showcase”
technopreneurs will be able to expand their
country for IoT
product portfolio vertically and horizontally
to take on global markets. Key strategies to
achieve the goals are as follows: 3.3 Target beneficiaries AND Value
Creation
• SMEs to act as IoT enablers who foster
the generation of globally-competitive IoT To a notable extent, IoT brings endless
products and services possibilities of value creation. The growth of IoT
will be widespread and bring beneficial effects
• The industry to develop generic solutions by 20251. Amplified and ubiquitous connectivity
that can be used across verticals will influence nearly everything, everyone and
• The industry to introduce “flagship” projects everywhere. The immediate value creation will
to nurture startups and SMEs in developing benefit three key target beneficiaries:
novel solutions and businesses for IoT
• The industry to nurture IoT talents to 3.3.1 Industry
further strengthen Malaysia’s position in
The impact of IoT to the industry comprises
the IoT industry
many folds. The most prominent impact will
3.2.3 GOAL 3: Malaysia as the Regional be efficiency. This is centred on cost reduction
Development Hub for IoT and improvement of asset utilisation. Data
analytics through smart devices will enable
This proposition is to encourage local IoT players companies to better understand customers
to tap on external markets for continued growth, and their business processes. This will lead to
with the following strategies: improvements in product and service design
and subsequently lead to the creation of more
• To position Malaysia as the preferred value for customers which typically means
location for IoT outsourcing services for the more revenue for the companies.
Malaysian industry and the world at large
Activities of SMEs and other local players will
• To build an integrated centre for IoT
bring local industries to the forefront of IoT.
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Knowledge of local markets and the proximity of society are able to enjoy the benefits of
to these will give local players the edge. technology advancement equally and fairly, and
Equipped with these competitive resources, no one is left out of the equation.
local players can partner with MNCs in
developing market-driven IoT solutions and at The societal inclusiveness will premise on
the same time exploit market opportunities for issues surrounding accessibility, availability
locally-developed IoT solutions. and affordability. IoT will be a platform for
inclusiveness – “Internet for Everyone” where
everyone in society can participate equally and
3.3.2 Government
make substantial contributions to economic
The network connection that citizens establish and social development.
with data, processes and things will create
new values. Herein, improvements in the With its pervasiveness and omnipresence
delivery of public service will improve citizen characteristics, IoT has greater potential to help
relationship management. provide hard-to-reach groups with the kinds of
services available to people in advanced places.
The leverage on IoT will break down silos For example, consider remote diagnoses and
of legacy systems and enable the sharing medical monitoring through mobile phones
of information across different government or wearable devices coupled with existing
agencies. The interexchange of information infrastructure such as Community Broadband
will reduce cost and ease information Centres (CBCs). IoT may provide populations
gathering. With IoT, the needs of society will located far from doctors with the kind of medical
become more visible and the Government care and expertise similar to those available in
system will become more agile and innovative. areas with easy access.
Poverty, public health, crime, and many more
critical areas will be easily tracked. For rural communities, IoT technologies are
potential new income generators. With the
connectivity and availability of information,
3.3.3 Society this will raise interest from visitors, residents,
workers and entrepreneurs to previously
In the National Strategic Framework for unknown areas and renew the lives of
Bridging the Digital Divide, there are nine existing businesses by expanding markets.
segments of societies which were identified as A community on the map can be located and
underserved communities. They are the elderly; new connections in and among communities
women; indigenous; rural and urban poor; can be created. Communities can work
youth; small, medium and micro enterprises together to unlock local opportunities, build
(SMME); children; rural; and the disabled. new skills and markets, and create a more
It is important to ensure that all segments vibrant local economy.
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3.3.4 Academia and research communities kick-start IoT in Malaysia. Through this
mechanism, a collaboration platform for
Academia and research communities will MNCs and local players to develop IoT
conduct front line research. They will develop solutions can be formulated on the basis of
and disseminate new techniques, reference improving lives in terms of security, comfort,
data and materials, test methods, standards, and the general quality of life. This will be one
and other infrastructural technologies and of the key building blocks for Malaysia as the
services required by the Malaysian IoT industry Premier Regional IoT Development Hub.
to maintain its competitiveness.
The success of IoT in Malaysia entails the
3.4 Implementation Gap Analysis creation of new and sustainable business
models that are able to produce new
IoT is real and is progressing aggressively. entrepreneurs and enterprises. The Government
The real value of IoT is attained through the can realise this through flagship programmes
integration of things and the knowledge in that can amalgamate the involvement of public
support decision making will be embedded and private research institutions as well as the
into the fabric of our business, personal and academia, SMEs and MNCs.
societal environments. While acknowledging
the vast potential of IoT, there are a myriad Therefore, the Government’s role in the
challenges that need to be addressed. development of IoT industry is crucial and
IoT is enabled through the convergence meaningful. The availability of seed funds
of technologies – devices, intelligence, for nurturing and incentivising local players
network analysis, thus success factors in its to actively participate in IoT and utilise the
implementation necessitate ecosystem efforts, technology to revolutionise their business
ranging from various government agencies, processes will expedite the diffusion of IoT in
academia and industry players. Malaysia. In addition, guidelines and policies
in defining the ownership of information,
IoT will evolve over time – with new uses, new privacy and security must be put in place
requirements and new technologies. Evolution to gain market confidence and protect the
incurs, and interoperability will be a major nation’s sovereignty.
concern, in terms of protocol design and
extensibility. There are also gaps in building
products that can work well together with Endnotes
other devices, and the setting of standards.
Ensuring interoperability and connectedness 1 Pew Research Center. (2014). The Internet of Things Will
of heterogeneous technologies (e.g. devices, Thrive by 2025. Available at: http://www.pewinternet.
connectivity, and business intelligence) is org/2014/05/14/internet-of-things/
therefore of utmost importance to successfully
Implementation Strategy
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Implementation
Strategy
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chapter 04
Implementation
Strategy
The influence of IoT in both enterprises 4.1 Seeding existing initiatives

and consumers is significant and notable.
However, the development of IoT is still in It is incontestable that in expanding IoT, there
its infancy and greater efforts are required are enormous benefits and potential impacts
to horizontalise IoT to a greater extent. This to an individual’s quality of life, an enterprise’s
chapter details the manifestation of IoT efforts bottom line and huge opportunities when, in
in the Malaysian market by outlining the idea current times, most things are connected to
of technology convergence supported by the the Internet and have embedded intelligence.
nestedness of national ecosystem coherence Currently, many industry players are not
factors to increase the participation of local familiar with the implementation of IoT.
ICT players as well as foreign investments. IoT itself is a big idea and there are many
elements contributing to the realisation of the
Creating digital Effective delivery of Creating new opportunities Uplift quality of life
opportunities Government services in the digital economy
Objective
10 Entry Point
6 National Key Result
8 projects as the initial
6 digital lifestyle
Opportunities
Projects (EPPs) Areas (NKRAs) set of initiatives to ecosystems with 4

Digital
under Communications, drive the growth of the focus areas

Content & Infrastructure digital economy
(CCI) National Key
Economic Area (NKEA)
Figure 4.1: Quick view of existing initiatives

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Alignment with Digital Lifestyle Malaysia Transformational Steps for the

(DLM) Initiative Development of IoT as an Industry
Why? • Early market engagement to reap the Why? • Sustain the development of IoT for
future benefits of a user-centric and greater effects and greater business
global Internet of Things values
• Improve the way benefits of IoT are
administered
How? • Enhance today’s solutions with major How? • Strengthen key enablers to scale up
simplicity for usage, interaction cross-pollination across companies
and efficacy to empower citizens to and industries in a cohesive
transform lifestyles ubiquitous manner
Figure 4.2: Short-term IoT implementation strategy for Malaysia
IoT concept. It is akin to a jigsaw puzzle that rapid technological innovation is in convincing
requires all pieces to fit together in the right users to willingly adopt emerging technologies
way to achieve defined goals. Therefore, the such as IoT. Therein comes MCMC’s Digital
values powered by the potential of IoT can be Lifestyle Malaysia (DLM) initiative which
based on an evolved approach, or in a totally it targeted at accelerating the adoption of
novel value proposal. a connected lifestyle and the Internet of
Things. This provides a strategic platform
The implementation of IoT builds on the to exteriorise IoT benefits to end users via
strengths of existing ICT initiatives expedited demand to drive supply opportunities through
by supporting infrastructure and auxiliary value creation.
facilities with the following advantages:
Therefore, a two-pronged implementation
• Existing initiatives with minimum systemic strategy is formulated, namely (i) Alignment
challenges and accumulated domain with Digital Lifestyle Malaysia (DLM) initiative,
knowledge shall provide a strong support and (ii) Transformational steps for the
towards widespread advances of IoT in development of IoT as an industry. Figure 4.2
identified strategic focus areas. details the implementation strategy.
• The validation and fine tuning of action
plans, growing body of experiences, best 4.2 Alignment with Digital Lifestyle
practices and knowledge shall garner Malaysia1 (DLM) initiative
growing support and deliver massive effect
and business value at even greater scales Aligning to DLM provides a framework and
in IoT-enabled projects. migration path to manifest visible value and
illustrates how an array of technologies
The key challenge in managing and fostering relate to each other with the configuration
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of IoT deployments in different scenarios. transparency and people focus (citizen-

This facilitates stakeholder adoption of centric approach)
new solutions and reduces implementation
complexity. Digital Lifestyle Malaysia is conceptualised
with six mega lifestyle ecosystems that
DLM’s objective is to provide a better quality comprises Work, Learning, Agriculture,
of life for all people in Malaysia by utilising ICT Transport, Entertainment and Districts that
applications. It is targeted at three main areas
as follows:
i. Economic: Increase GNI contribution,

wealth generation, market capitalisation,
productivity and high value jobs
ii. Social: Infusion of technology to uplift
quality of life and accelerate the adoption
and smarter use of technology to improve
productivity and sustainability
iii. Governance: Enable governing entities Figure 4.3: MCMC’s Digital Lifestyle Malaysia
a greater outreach to constituents, Source: MCMC’s Digital Lifestyle Malaysia slides (2013)
Digital Lifestyle – Transport Digital Lifestyle – Agriculture Digital Lifestyle – Districts

• Make Malaysia one of the top five • Emphasis on food traceability • Lifestyle-oriented township/city/state
in the Asia Pacific container track • Strengthen Malaysia’s reputation in management for a wide spectrum
and trace business food quality assurance and as a Halal of service delivery such as traffic,
• Improve trade facilitation and hub utilities and public amenities
boost Malaysia’s competitive • Project(s): e-Halal, Traceability • Project(s): Digital Concept Home
advantage in terms of supply chain (MMU), Digital Communities (Pekan)
management practices
• Project(s): Secure trade facilitation
(JKDM), MyPUTRAS
Digital Lifestyle – Entertainment Digital Lifestyle – Learning Digital Lifestyle – Work
• Foster the growth of the creative • Create conducive learning • Provide intelligent working
content industry environments environments to promote work-life
• Project(s): My1Content • Cultivate lifelong learning balance
• Project(s): U-Pustaka • Outsource routine operational

activities with IoT solutions
• Project(s): GMBO
Table 4.1: Six ecosystems of Digital Lifestyle Malaysia

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Focus Area Objective Possible IoT Applications & Solutions

Connected To promote healthy living and wellness assisted Applications in healthcare and wellness such as:
Healthcare by digital lifestyle services through enhanced • Mobile health apps
service availability everywhere and at any time
• Remote patient monitoring
• Sensor-based e-health technologies for wellness
Traceability To increase applications of traceability in asset Applications in asset and supply chain management;
and supply chain management, improve safety retails shoppers equipped with mobile applications for
and efficiency, and promote a higher value for tracing and mobile payment
Malaysian-made products
Home & To provide support to SMEs/entrepreneurs/ Applications and solutions for the environment in
Community developers to create and innovate in building homes and communities such as:
Living ecosystems based on a smart connected digital • E-agriculture (e.g. supply & demand platform)
lifestyle in homes and communities
• Smart community (e.g. e-bistro, e-laundry,
To empower communities with the power of ICT m-hawker)
and broadband enabling creation, innovation and • Local e-learning (virtual learning, m-tuition,
leverage for a better future u-Pustaka)
• Localised community advertising
• E-municipalities (e.g. snap & report)
• Entertainment
People-friendly To provide new information services via mash- • Bus transportation information
Commuting up data created from existing and planned • E-parking
multimodal transport systems and associated
services to commuting travellers or tourists on • Taxi booking
items such as traffic information, food, shops, • Fleet management
travel routes/mode choices and places of • Travel tips and rail information with real-time info
interest in real-time via smart devices to facilitate travelling and commuting
Table 4.2: Summary of Digital Lifestyle Malaysia focus areas
represents the daily activities of Malaysians. within a dynamic lifestyle ecosystem, with
This will enable Malaysians to compete at greater sustainability with economies of scale
the global arena by increasing productivity and greater omnipresence.
and sustainability through the adoption of
intelligent IoT applications and services and An overview of the six key ecosystems is
ultimately providing a ubiquitous way of life summarised in Table 4.1. The four focus areas
for the masses through technology. The identified for the acceleration of development
embedded connected intelligence of IoT will and adoption of IoT are summarised in Table
benefit the general public via relevant and 4.2.
sustainable link ups with the current lifestyle
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In aligning with DLM’s guiding principles, the healthcare services that would
IoT implementation approach will leverage deliver an array of e-health apps to
on existing infrastructure i.e. community increase quality of life and savings in
broadband centres (CBCs) to serve as focal healthcare expenditure.
points to promote the pervasive use of IoT
to create valuable applications and services 2. Connected Healthcare: Pusat Internet
for the benefit of the rakyat with an improved 1Malaysia E-Healthcare pilot project
quality of living. (PI1ME-H)
OVERVIEW OF DIGITAL LIFESTYLE MALAYSIA • PI1ME-H is intended to facilitate

OPPORTUNITIES IN IOT access to health services for
people living in rural areas through
1. Connected Healthcare: Remote Patient integrated healthcare services by
Monitoring pilot project combining ICT and broadband. It
is also aimed at empowering rural
• With the growth of medical communities towards proactive
technology, aging population and health awareness.
improving infrastructure, the potential
and demand in remote patient • MCMC has so far established
monitoring in Malaysia is expected to 426 Pusat Internet 1Malaysia
gain momentum in due course. (PI1M) throughout the country
to collectively provide Internet
• Allowing patients to stay at home access to underserved broadband
rather than in hospitals for chronic services areas identified under the
disease and post-acute care Universal Service Provision (USP).
management could translate to Each PI1M was equipped with a
huge savings for a healthcare minimum bandwidth of up to 2Mbps,
system. Accordingly, the exploration computers, a training room and ICT
of a remote patient monitoring facilities.
mechanism is timely, capitalising
on the development of digital • Besides the main aim of providing
technologies to improve the delivery Internet access, PI1M also serves
of healthcare services to the masses. as a one-stop centre to organise
monthly activities for the rural
• This initiative is led by MCMC and community. With the addition of
targets Mahkota Medical Centre primary healthcare services in PI1M,
and Ministry of Health (telehealth this adds a convenience, expands
division) to introduce home-based the healthcare ecosystem, and
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provides for continuous monitoring Facilitation System), which entails

between communities and selected the setting up of a radio frequency
government clinics. identification (RFID) infrastructure to
provide security and automation of
3. Connected Healthcare: CBC paperless Royal Malaysian Customs
E-Healthcare (JKDM) checkpoints throughout
Malaysia.
• The main focus of the proposed
service is to facilitate access to • Under this project, containers
healthcare services for people living entering, leaving and moving within
in far-flung districts via an integrated the country will be tracked under
care service combining remote and the RFID system based on ISO
face-to-face contact made available 18186:2010 and the GS1 EPC global
through the CBC. It is also aimed EPCIS standard. The reusable
at increasing traffic flow to the RFID seal affixed to containers are
CBCs, thus optimising the usage of scanned by RFID readers set up
the centres and creating efficiency at strategic locations to retrieve
in the use of the resources made container information.
available there by MCMC and the
communications service provider as • Among the advantages of this system
well as the various empowerment are the improvement in the efficiency
programmes available to promote a of container clearance which will
digital lifestyle. reduce queuing times at customs
check points, improvement of
• Through a collaboration with security through automatic detection
the Ministry of Health and BP of compromised or open containers
Healthcare, MCMC would leverage and optimisation of human resources
on 12 selected CBCs across six for better services.
states – Pahang, Perak, Negeri
Sembilan, Johor, Sabah and Sarawak 5. Traceability: Swiftlet nests
– for this pilot.
• Jointly led by MCMC and the
4. Traceability: Secured Trade Facilitation Department of Veterinary Services
System of the Ministry of Agriculture and
Agro-Based Industry, the aim of
• Smartag Solutions Berhad has this project was to develop, test
set up Smartag Secured Trade and implement a new system and
(Container Security and Trade standard for tracking and tracing
40 chapter
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the delivery of swiftlet nests for Library, Sabah State Library, Kuala
the global market. This effort was Lumpur Library, Sarawak State
carried out in collaboration with Library, MAMPU, Economic Planning
the associations of swiftlet nest Unit (EPU), National Registration
producers in Malaysia. Department, Centre of Excellence
for Sensor Technology at UPM, Pos
• Using radio frequency identification Malaysia, Touch ‘n Go, MyClear, and
(RFID) as the primary technology, a Bank Islam Malaysia Berhad.
traceability platform was set up for
the Government and swiftlet nest • The Sabah State Library is the eighth
producers, who were able to trace u-Pustaka consortium member
their products along the supply chain that went through the process of
from harvesting to production while implementation in 2012. The overall
being transported to high value participation and joint activities from
markets in China and eventually various agencies is encouraging.
Japan and Taiwan.
• Currently, u-Pustaka is popularly
6. Home and Community Living: u-Pustaka known by citizens. Usage trends
indicate that the u-Pustaka portal
• u-Pustaka is an initiative that links is continuously accessed by visitors
the country’s knowledge assets and from home and abroad from 104
modernisation of services which countries and 734 cities covering
culminates in a single point of neighbouring countries, Asia Pacific,
contact with no limitation of time and the United States of America,
place for citizens. Europe, Russia, Poland and even up
to Iceland. The total membership of
• u-Pustaka Consortium, in u-Pustaka has reached 300,000 while
collaboration with u-Pustaka more than 11,000 loan transactions
strategic partners, created the and book returns were recorded
u-Pustaka model as a knowledge since the launch of the u-Pustaka on
ecosystem for continuous learning 31 March 2011.
in the digital lifestyle for an
inclusive knowledge-based society. 7. Home and Community Living: Get
Sustainable support was given by Malaysian Business Online (GMBO)
18 organisations, i.e. MICC, MCMC,
National Library of Malaysia, INTAN, • GMBO was launched in November
Pahang State Library, Selangor 2011 to encourage micro, small and
State Library, Negeri Sembilan State medium-sized enterprises to promote
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their products or businesses online. 4.3 PILOT project proposals

Google’s platform offered a free, quick
and easy self-help website builder IoT offers many advantages such as cost
and a sustainable support network reduction for solution development through
to help businesses participate in the the reuse of existing technologies for
digital economy. interoperability, control and monitoring
capabilities. This results in the flexibility
• This project aimed to bring at least to compose a wide array of applications
50,000 Malaysian SMEs online and for market verticals from healthcare to
make them successful on the web agriculture to smart cities. The following
within one year. At the end of 2012, sections attempt to enhance awareness on
almost 30,000 SMEs signed up for possible applications and implications of IoT in
the programme where almost 10,000 these industry sectors. The sections show the
successfully launched their website resultant achievements of various business
under the .com.my domain. models via IoT.
8. People-Friendly Commuting: My Journey The pilot projects act as catalysts for industry
players to apply forward-thinking approaches
• My Journey is a joint project led on how IoT applications are built, used and
by MCMC and the Land Public displayed while increasing the industry’s
Transport Commission (SPAD) to participation in economic activities by
develop an ecosystem to provide utilising IoT technologies. The projects flag
information to the public and areas that require further attention from
tourists to encourage the usage of IoT implementation teams and highlight
public transport via information via underpinning issues that should receive more
smartphones and web portals. attention and countermeasures.
• Applications will provide multimodal The following sections also describe each pilot
transport information on buses and project proposal in terms of its objective and
trains, and integrate with existing relevance towards the IoT implementation
taxi applications for Greater Klang plan. Each pilot project will steer
Valley/Kuala Lumpur. Eventually, the collaborations on IoT design and architecture
services will be expanded to include and demonstrate how IoT contributes to
parking, tourism, places of interests quality of life and engages public spaces and
and communication facilities. destinations. The idea of a pilot project is to
create a design that enables people hence
making them feel empowered, important
and excited to be in the places they inhabit
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in their daily lives. The identified projects are Once separate sectors, technology and
initiatives that already have potential investors, agriculture now coexist. With the help of
defined implantation plans, articulated technology, farm operators will now have a
investment requirements and scopes of work. holistic approach to their operations from
identifying seed genetics, evaluating suitable
It is important to emphasise that this National fertilisers, and selecting the right pesticides;
IoT Strategic Roadmap is a living document. to analysing the impacts of decision making
The pilot projects defined here are not through a growing season on the next as
intended to be an exclusive listing of detailed well as the impact on the environment, and
implementation plans for the identified deliver the final produce to the food supply
projects; these serve to kick-start IoT. The chain. Also, the knowledge base on production
number of projects will evolve and grow and practices will be required by regulatory
many new initiatives and activities that may agencies and growing public consumers.
have not been thought of being possible could This is coupled with upstream supply chain
be added to the listing. pressure to be fulfilled with daily on-farm
operations with accountability and traceability.
4.3.1 Agriculture and aquaculture
Crop quality is a combination of weather,

environmental and other related factors such
as understanding the impacts of seeds, soil
and practices which can give a producer an Intelligent Decision
edge in the marketplace. Farm operators, in Support System
recent years, have also discovered that they
could also benefit from technology. Also,
efficiency is of utmost importance with the
increase in world population and decrease Mobile
Application
in resources to feed the growing number
of people. Global population is projected
to reach 9.4 billion by 2050 which almost WiFi Processing Facility
doubles current world food needs. This fact
alone presents a challenge to those in the
supply chain. Adding to this, competition for
land and water, climate change, maintaining
biodiversity and a host of other environmental
issues make it clear that technology is the key Sensors in Hatchery and Nursery
to get the job done2.
Figure 4.4: Overview of aquaculture traceability system
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DLM focus area alignment Traceability
Project Aquaculture Farming: From Pond to Plate

Lead Aquagrow Corporation Sdn Bhd
Collaborator MIMOS Berhad
Ministry of Agriculture and Agro-Based Industry (MoA); Ministry of International Trade and
Ministry
Industry (MITI)
Table 4.3: Aquaculture traceability application project profile
Therein, IoT plays an important role in modern • Enhanced food security through reduced
aquaculture. Real-time and accurate reports yield fluctuations by bacterial infection or
can be at the farmers’ fingertips via the huge climate change.
amounts of data generated by field sensors
stored in efficient and secured storage
solutions. New areas for business can be IoT application: Aquaculture traceability
created by solutions that provide efficient data
access and processing. With IoT solutions, Traceability’s biggest benefit through the
farmers can focus to look into new methods to implementation of IoT is greater visibility of
increase production quantity while maintaining business operations and performance. In
affordability and sustainability in the value chain. aquaculture, every crop species will have
Using this method, crop cultivation is done using a “passport” with its history and its entire
an automatically balanced nutrient-rich diet and provenance. This will enable operators to
precise amounts of water thereby using less know an animal’s history and identify those
resources and inputs and allowing farmers to that are doing well to output better and higher
harvest more and better quality crops. quality produce. Operators are also informed
on the mitigation of environmental problems
There are numerous foreseeable benefits by with more consciousness on riparian and
integrating IoT technologies in the aquaculture sensitive areas that need protection.
sector such as:
Using connected devices, operators can
• Increased levels of productivity which easily measure air and water quality as
lead to higher producer income and lower well as an animal’s well-being and type. In
consumer prices. a nutshell, IoT increases farm operation
efficiency without the use of chemicals
• Efficient usage of chemical inputs and
or altering the natural crop life cycle. It
reduction of environmentally harmful
is noted that trace elements are equally
inputs such as additives thereby aligning
important to an animal’s well-being and
with sustainable aquaculture in increased
helps them to thrive.
environmental friendliness and cost efficiency.
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The objective of this IoT-enabled application and capability of preciseness. Therefore,

and service is to enhance the track and quantified self and holistic wellness is
traceability function of the breeder, and important and in the near future, a focal point
subsequently enhance supply and demand for all individuals.
visibility, optimise production and quality
control in order to build competitive powers. The future of healthcare will reverse the
skyrocketing costs of healthcare services
The aforementioned project is aimed at through cause treatment rather than
improving the sustainability and livelihood symptomatic treatment by utilising data for
security of aquaculture stakeholders, the prevention and wellness. Medical experts
quality and traceability of aquaculture can utilise IoT technologies ranging from
products, and sustaining or expanding trade wearable devices that track daily activities,
in aquaculture products to premium markets. vital signs and diet habits to further merge,
Table 4.3 summarises the project profile. dissect and crunch data for biomarkers or
measurable indicators that help them create
a baseline for accurate diagnostics and
4.3.2 Healthcare
precision treatment.
It is of utmost importance for individuals
and primary care providers to understand IoT contributes to individuals in many
the reality and holistic health conditions of a important ways that transform our ability to
person in order to provide the right medical monitor and optimise wellness by:
advice and care. Often, when a patient attends
• Generating predictive and actionable
a medical consultation session, he or she
models of health and disease for individual
is required to inform a medical consultant
health by the enabling of new tools for
on health symptoms or signs that cause
mining, integration and modelling of data
discomfort. Information quality and reliability
sets of heterogeneous biological data.
is solely subject to the individual’s articulation
DLM focus area alignment Connected Healthcare
Project Continuous Health Monitoring

Lead CREST
Collaborator Kontron
Ministry Ministry of Health (MoH)
Table 4.4: Continuous health monitoring application project profile

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• Enabling wellness and disease of Malaysian children, apart from physical

assessments for individuals via digitised activities and blood biochemistry which
biological and social information. resulted in the following findings:
• Creating patient-driven social networks • Approximately 50 percent of children are
for wellness optimisation and disease experiencing nutrient deficiency in vitamin
management. D and calcium
• One in every 10 children in urban areas show
Auto SOS and signs of malnutrition; on the contrary, a lower
Panic Device
percentage was observed in rural areas
Hospitals/
• For every 10 children, one child does not
Phone Calls,
SMSes and Local
Clinics have the right physical growth
Alerts with GPS
Location • One in five children has overnutrition issues
Close monitoring of adequate and proper

Health Info
Caregivers
nutrition is required for a child’s well-being
WiFi
before the age of 10 as balanced food and
nutrient intake are of highest importance for
growth and intelligence.
Cloud Doctors
Computing
As of 2011, the participation rate of the
Figure 4.5: Overview of continous health monitoring system female labour force in Malaysia stood at 47.9
percent4, and 11 percent of the total children
population was aged between zero to four
IoT application: Continuous health monitoring years. The rising costs of living resulted in
urban families of dual-income earners that
The growth of a child in areas of mind lead to the increasing demand for childcare
development, intellectual capacity and physical services for children aged below seven5. This
growth are positively related to nutrient intake. indicates that parental monitoring on the well-
Mind development and intellectual capacity being of children is merely based on inputs
can be hindered by insufficient intakes of from childcare centre operators. Therein,
essential nutrients. Physical growth, in turn, more effective, multi-component monitoring is
will be affected as well. needed, ideally addressing both areas of diet
and physical activities.
A study was conducted in 20113 to measure
the nutritional status, dietary intake and habits Acknowledging market needs, a homegrown
wearable device is to be developed and
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targeted at parents who wish to monitor the The indicators on the conditions and
growth of children below two years old via the ”health” of a city are continuously generated
tracking of physical properties such as weight, by geo-tagged or geo-located sensors,
height, physical activities, diet and other devices, systems and services. To make a
important measurements. This collaboration city more liveable, economically competitive
is shown in Table 4.4. and sustainable, future city managements
require intelligent systems and a single city
4.3.3 Government command and control centre to manage its
citizens and services. The city also requires
70 percent of the world’s population will be thorough planning and management in terms
living in cities by 20506 as populations become of utilities, the production renewable and clean
more concentrated in larger urban areas. energy, traffic and transport solutions that
This phenomenon will reshape the interactive, reduce congestion and air pollution, and real-
engagement and representation management time monitoring and surveillance for security.
model for local governments. Municipalities may efficiently achieve a better
way of managing urban traffic and utilities
Twenty-first century smart cities are with sensor-based data collected across
equipped with IoT-driven services to improve the city that provide real-time geographic
citizens’ quality of life through measures coverage at low costs.
that promote eco-friendly and sustainable
environments. Via the smart city platform, IoT will be as part of a holistic, services-oriented
sustainable partnerships and cooperation approach to revitalise cities with the following
strategies among main stakeholders are points on sustainable and inclusive growth:
encouraged to ensure the effective sharing • Economic development and job creation
of common city resources among its citizens
and business communities. • Resource efficiency and climate change
mitigation
DLM focus area alignment Home & Community Living

Project Smart Village: Lanchang, Pahang
Lead Archpac Corporation Sdn Bhd
Universiti Malaysia Pahang (UMP), MIMOS Berhad,
Collaborator
Pahang State Government
Ministry Ministry of Tourism & Culture
Table 4.5: Smart Village project profile

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• Liveable places for life, work and leisure develop and maintain promotional webpages;
a channel for local authorities and local
• Effective city management
governments to disperse information to
• Community support targeted groups, be a surveillance centre point
for security or systematic monitoring, and
provide for the tracking of visitor or animal
movements on real-time basis.
In addition, IoT technologies will spur location-

based services for the local community to
leverage on promoting local tourism-related
businesses such as homestays, tourist guides
or tourist hotspots and so on. Besides this,
location-based information for local stores
and cottage industries such as local specialty
handicrafts and local delicacies will further
boost a tourist-friendly environment. This
collaboration is shown in Table 4.5.
Figure 4.6: Overview of
Smart Village deployment
and devices
4.3.4 Environment
IoT application: Smart Village Humans and the environment are

interdependent and correlated with each other.
Smart Village is an adaptation of the Smart Therefore, it is of paramount importance to
City concept in rural areas and villages that create a prosperous and equitable society
will eradicate rural poverty, reduce urban that lives in harmony with the environment.
migration and provide for self-sustainable Environment management through IoT will
production and consumption (e.g. rural enhance environmental protection, efficiency
electrification), through the utilisation in natural resource management, diminish
of natural resources. This is as village waste and emissions, and mitigate climate
communities are usually of a lower education change and conservation.
background and lack the practical knowledge
of certain business domains. IoT enables sensing strategies featuring real-
time data perception, resource concentration
Connectivity will enable Community and sharing, system integration as well as
Broadband Centres (CBCs) to become a new effective supervision and decision making
business model in helping local communities to reduce waste, improve the environment
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DLM focus area alignment Home & Community Living
Project Intelligent Landfill Management

Lead KUB-Berjaya Enviro Sdn Bhd
Collaborator TBC
Ministry Ministry of Energy, Green Technology and Water (KeTTHA)
Table 4.6: Intelligent landfill management application project profile
and prevent environmental accidents. • Ensuring the efficient use of inputs and
Specific tasks in this area include intelligent consumed resources by minimising
waste discharge and automatic monitoring, non-compliance with environmental
monitoring of pollution, water quality and air, legislations, and reacting positively to
and regional ecological monitoring. environment issues if they occur.
• Delivering a market edge as many
Therein, IoT is able to provide a structured
customers now favour suppliers who have
approach to planning and implementing
an environmental base.
environmental protection measures by:
IoT application: Intelligent landfill
• Effective management and control of
management
environmental impacts by resource
conservation and reduction of product or
Landfill operators have to fulfil a tall order
energy wastage that translates into cost
to maximise operational efficiency using
savings.
minimal cost while ensuring worker safety and
promoting positive public perception of its site.
The importance of compaction, site operation
management and equipment selection are all
Mobile Applications
part and parcel of the job.
Leachate Treatment Plant
Weighbridge Landfills pose environmental hazards due

to potential greenhouse gas emissions or
Knowledge
Management
Sensors groundwater contamination besides odour,
wind scatter and regular fires. Communities
who live close to landfills often face risk from
these negative impacts.
Video Analytics Renewable Energy Centre
Figure 4.7: Overview of intelligent landfill management Using IoT, landfill operators will be
system empowered by the positioning of
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environmental sensors to monitor Malaysia’s transformational agenda should be

environment parameters (water and air the focal point to foster faster adoption of IoT.
quality) to prevent the landfill site from Transformational activities will necessitate
becoming a breeding ground for rodents, flies multi-layered changes and investments which
or other disease vectors. With surveillance entails the development of new capabilities,
cameras, operators can remotely monitor the distinctive strengths (a combination of people,
site which is properly fenced off to keep people process, and tools) to successfully compete
and animals out besides monitoring the types in the global marketplace, and changing how
and volume of waste being dumped at the site businesses engage their customers.
(refer to Table 4.6).
4.4.1 Business value realisation from
4.4 Transformational steps for the modernisation to innovation transformation
development of IoT as an industry
Communities of practice (CoPs) could
Enterprises stand to profit from IoT through be engaged to introduce transformation
increased operating efficiencies, scalability to IoT partners that face businesses by
and agility. The foundation of IoT technologies bringing more in-depth technology insights
can also be leveraged upon to align towards and opportunities for businesses. This is
a new service delivery and production model accomplished by leveraging on external
geared towards the needs and demands of the partners to mitigate skill shortages in
global market. transformation delivery while reserving
internal resources to focus on core
7.3% 6.2%
Rental Financing
7.5% 7.1%
Transport Others
8.7% 45.7%
Utilities Raw material & other inputs
17.6%
Labour/staff
Figure 4.8 : Operating cost structure of SMEs

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competencies. With CoPs, expertise from a hand-to-mouth financial regime. Based

different domains can be augmented to on the SMEs operating cost structure8
establish IoT solution design capabilities (refer to Figure 4.8), input contributes to a
as a prerequisite to identifying technology big portion of cost. Therefore, SMEs may
investments and transformations. perceive that the incorporation of IoT into
existing business processes will increase
These communities will introduce IoT pressure on their financial conditions.
technologies in an agile approach to spur
transformational change and manage Therefore, it is recommended that the
information as a strategic asset to support Government provide financial incentives
innovation. In addition, these communities will (e.g. tax rebates or tax incentives for a
serve in roles for effective governance around 3-year duration (2015-2018)) to motivate
transformational business case approvals and SMEs to utilise IoT for enhancements
support the realisation and prioritisation of in competitiveness and efficiency and
transformational projects. establish a special fund to finance IoT
adoption by SMEs.
4.4.2 Revitalising SMEs towards a ii. Awareness campaigns and programmes
competitive global arena
The possibility that most SMEs are aware
SMEs have been Malaysia’s priority since 2004 of the existence of IoT is superficial.
and currently contribute approximately 32.7 At the present moment, entrepreneurs
percent7 to Malaysia’s economy. Enabling the are not convinced of the necessity of
creation of new business opportunities through the use of such technologies for their
market information and knowledge accessibility, enterprises. Therefore, the Government
and expediting reliable business and better should initiate and support awareness
customer communications are the underlying campaigns and strategic development
motivational factors to adopt new technology. programmes to enhance the capacity of
Therefore, it is imperative to address the main SMEs in IoT technologies.
concerns among SMEs towards IoT by the
following: iii. Innovative application and service
development
i. Financial risk mitigation and incentives
80 percent of IoT-driven market
Cost is a consistent hindering factor on opportunities gravitate towards
ICT adoption by small and medium-sized applications and services9, thus posing
enterprises. SMEs operate on lean capitals lucrative business opportunities for
that have little or no room for investments service-based entrepreneurs to develop
in ICT. In a broad sense, they operate on applications and services for their
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respective target markets such as health remarkable versatility as well as being

monitoring, logistics management, solution-oriented. However, startups need
fleet management, asset monitoring to be able to sustain this with a conducive
management and so on. ecosystem comprising the following:
iv. Enhanced collaboration • Talents with “STEM” skills (Science,

Technology, Engineering and
Linkages and collaborations across the Mathematics)
innovation ecosystem between industry
players, the academia and research • IP system that rewards invention
institutions must be approached in a • Certainty, predictability and an
systematic way in order for the correct incentive-centric taxation system
innovative technology to be developed
and serve the needs of entrepreneurs
4.4.3 Talent building
effectively thereby granting early access to
investors on new promising ideas. There is also a need to prepare the workforce
of the future in IoT. Educational institutions
Thus, a tripartite coalition helps enable need to be equipped with relevant syllabus
idea generation and development and facilities for the growth and nurturing
(e.g. linking academics, researchers of IoT professionals. These institution must
and industry specialists), capability be able to generate producers not only
enhancement (e.g. mentors and support consumers of technology.
services), access to shared infrastructure
(e.g. laboratories and test facilities), Learning institutions need to provide a strong
and ultimately commercialisation (e.g. foundation for Science and Engineering
investors and customers). students and enhance it further in order
to produce solid IoT professionals. Moving
v. Startup accelerators
forward, the education industry could give
With agility and scalability capabilities, rise to potential talents able to build better
startups are one of building blocks to solutions for the future.
create a fertile landscape towards bullish
economic growth. The notion of the The creation of an “IoT Centre of Excellence”
acceleration seed is to drive economic will serve as a “transition point” to develop
growth and foster an entrepreneurial more IoT professionals graduating from
culture within local communities. IoT institutes of higher learning. Students will
would allow entrepreneurs’ creative minds then be able to adopt new technologies for
to explore and finance new ideas with learning as they will thrive in IoT. The ease of
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learning through IoT would also prepare and in IoT and scale up the IoT-ised sustainable
create new solutions for the future. competitive advantage over time.
4.5 Conclusion To be critical, Malaysia’s innovation strategy

success hinges on excellent execution with
Malaysia needs to execute a cohesive national the right combination of talent, infrastructure
innovation strategy well in order to reap the and resources. Herein, market-savvy and
benefits of IoT and as a booster to reach influential entities would need to lead the
the Vision 2020 aspiration of a high-income efforts in ramping up the nation’s innovation
economy. Instead of creating new projects, agenda and fixing the current gaps in
Malaysia would need to identify selected high- Malaysia’s innovation ecosystem landscape.
priority sectors that will gain expert domains
Endnotes
1 a. Digital Lifestyle Malaysia Initiative. Acceleration 5 Heng, K.C. (2008). Child Care in Malaysia: Then and Now.
adoption of connected lifestyle and the Internet of International Journal of Child Care and Education Policy,
Things, 2013-2015. Vol. 2, No.2, 31-41.
b. Malini Ramalingam, (2013). Digital Lifestyle Malaysia. 6 United Nation. Urban population growth. Available at:
Engage and interact productivity and responsibly to http://www.who.int/gho/urban_health/situation_trends/
unlock the value of new media. urban_population_growth_text/en/
2 Food and Agriculture Organization 7 a. Lim, W.H. (2014). Redefining SMEs. Efforts are
3 Hamzah, H. (2011). Keep track of children’s dietary underway to get more targeted assistance to small
requirements, consumption. Borneo Post Online. Malaysia business. The Star, Metrobiz, page 22-24.
Available at: http://www.theborneopost.com/2012/12/07/ b. SME Masterplan 2012-2020
keep-track-of-childrens-dietary-requirements- 8 Ibid.
consumption/#ixzz38m9OzGLV
9 Ramamoorthy, G.. (2014). The Internet of Things.
4 55% of women expected to be in workforce by 2015. The Emerging business models, challenges & opportunities.
Star, 2012. Available at: http://www.thestar.com.my/ Gartner.
news/nation/2012/10/05/55-of-women-expected-to-be-
in-workforce-by-2015.asp/
Sustainable Game-Changing Strategies
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chapter 05
Sustainable Game-
Changing Strategies
54 chapter
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chapter 05
Sustainable Game-
Changing Strategies
During the development of the National IoT in the applications and services layer,
“When billions Strategic Roadmap, members of the Technical public data should be made available to
of ‘things’ and Working Group (TWG) have called for a set the ecosystem. Today, the growth of IoT
people are of strategies that would fully transform the applications is often hindered by silos of
prevailing opportunities in IoT technologies gathered data.
interconnected, into a sustainable industry.
ii. Pockets of IoT initiatives – IoT has been
it is only natural recognised as the next step of the Internet.
The previous chapter detailed the immediate
that they implementation plans that will introduce the
Accordingly, several initiatives have been
put in place to promote the proliferation
share data, values of IoT to the country through several
of IoT applications in Malaysia. However,
strategic programmes. The thought process
information, of the proposed strategies presented in this
those efforts comprise fragmented pockets
of initiatives which bring minimal impact to
knowledge and chapter is to bring Malaysia’s IoT industry
the formation of the industry ecosystem.
other resources maturity level from the introduction stage to
the growth stage, while creating a sustainable iii. Concerns of authenticity of information
so that their and significant industry ecosystem that will – The proliferation of IoT will see more data
collective position Malaysia as the Premier Regional IoT gathered from various devices and sources,
Development Hub. especially social media. Concerns on
potential can be trustworthiness may stall the adoption of IoT.
reaped.” 5.1 OVERVIEW iv. Adaptation and adoption fears –
Concerns of security and privacy are
As discussed in Chapter 2, there are several further amplified by concerns of adopting
challenges and barriers as well as enablers new business processes. Resistance
and catalysts to the growth of the ecosystem related to loss of employment from the
that is to be formed for the IoT industry implementation of the technology are
in Malaysia. From the data gathered and expected. Further fear is also expected as
analysed, there are 13 principal factors that a result of higher process transparency.
could affect the development of the strategies
for the IoT ecosystem in Malaysia: v. Concerns of security and privacy –
Security and privacy concerns may prevent
i. Silos of information and data – In order the sharing of data to the ecosystem,
to have a vibrant IoT industry, especially consequently hindering its growth.
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0
vi. Funding continuity – As a result of the industry. Efforts are required to reduce the “Communities
aforementioned pockets of initiatives, technology’s complexity.
there is a lack of continuity from one of practice are
ix. Local products, apps and services – The
stage of funding to another. Subsequently,
propagation of use of local products, apps groups of people
local IoT players are facing problems in
competing with foreign companies.
and services is critical to the growth of the who share a
IoT ecosystem.
vii. Infrastructure readiness – Malaysia has concern, a set
x. Talents in IoT – For the ecosystem to
an advanced infostructure through the
grow and prosper, a continuous supply of
of problems,
implementation of the National Broadband
Initiative (NBI). Nevertheless, the lack of
talent is critical. Hence, IoT-specific talent or a passion
availability is another important factor to
IP addresses will be a deterrent factor
be considered.
about a topic,
towards the growth of the ecosystem. and who deepen
xi. Interoperability and testing services –
viii. Harmonisation of standards – As IoT
Interoperability and testing services are to their knowledge
is a technology that has evolved from
existing technologies, there are a myriad
facilitate the interworking of the various IoT and expertise
components. Testing services will ensure a
of standards to be dealt with by the
greater capability for the ecosystem. in this area by
interacting on an
ELIMINATE REDUCE RAISE CREATE
on-going basis.”
10
9
8
7
6
5
4
3
2
1
0
ta es n s y ty s ds es T es se s
Da iv io ar ac ui es ar ic Io ic ba er
at at Fe iv in in rv in rv ld
& iti rm n Pr nt ad nd Se s Se
ta ho
n In fo io & Co Re ta nt Da e
tio T In pt ty g fS & le ng ry ak
a Io of
o ri in ur
e o
pp
s Ta st
i st St
rm of Ad cu nd ct io
n
Te du gs
t
nf
o s ity & Se Fu u at s,
A
In
I et ic n
of
tr s t & on
of ck nt tio as ni uc lit
y
he ta s fr o d bi Am
lo
s Po t
er
n In rm ro n
Si Au ap P ra tio
of Ad nc Ha al pe ra
Co c ro bo
ns Lo te
er In lla
nc Co
Co
Figure 5.1: Strategy canvas for IoT ecosystem

56 chapter
05
xii. Industry database – The establishment of consider the “blue ocean” approach to tackle
an industry database is vital to monitor the the challenges faced by the industry.
growth and development of the industry.
Considering the factors depicted in the canvas
xiii. Collaboration amongst stakeholders
above, the three key strategies (refer to Figure
(universities, industry players and other
5.2) proposed in this chapter are with the
government agencies) – Collaboration
intention to create a vibrant and sustainable
is an important factor for the ecosystem
IoT ecosystem in Malaysia.
to grow as networked organisations are
able to share knowledge and resources to
grow their capabilities especially in facing 5.1.1 Formation of IoT Malaysia
global competition.
This strategy is to establish a Community of
Practice (CoP) for IoT in Malaysia. It will be an
entity composed of industry practitioners who
IoT share a common interest to build an industry
y
Malaysia
en log
out of IoT technologies. This strategy is

Op omo
m no
pr
ts
en tio
targeted to benefit the industry as a whole.

ire ch
da n
qu te
ta
re gic
te
ra
5.1.2 Establishment of the Open Innovation

St
Framework
no gic
ies
Open
ch te
log
Open
te tra
Innovation Community The second strategy is aimed at establishing

S
Framework Data
Framework
a common framework for the development
of IoT technologies in Malaysia. The
intended Open Innovation Framework is
Figure 5.2: Three game-changing strategies
not a standardisation initiative, but rather
a common platform or “sandbox” for the
Based on the parameters mentioned above, industry. This initiative will also be the
a study of the perceived value was captured industry’s technological requirement
during the TWG workshop conducted in May gathering platform for the development of
2014. The value curve represented in the technologies by local researchers, research
strategy canvas (refer to Figure 5.1), depicts the institutes and universities.
relative performance of the critical parameters.
5.1.3 Organising the Open Community Data
In order to create a strong and competitive Framework
industry, Malaysia has to be positioned well
above other countries. Hence, it is critical to The final strategy deliberates on the method
of growing the industry to the next level by
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opening up public data with the intention of will address the 13 challenges listed in the
expanding the applications of IoT. This strategy introduction of this chapter.
is targeted to primarily benefit small and
medium enterprises (SMEs).
IoT is an emerging concept which
The three key strategies will be described is rapidly developing in many parts
further in the following sections of this chapter. of the world. Even as Malaysia
begins to adopt the concept and
5.2 Formation of IoT Malaysia explore its possibilities, IoT or
its related technologies (such as
5.2.1 Introduction machine-to-machine) have already
IoT Malaysia shall be the industry body that
made an impact on many research
will be responsible for the development of the domains by providing new solutions
IoT industry in Malaysia. IoT Malaysia shall be and ideas. The massive amount of
the Community of Practice (CoP) of IoT-based data, information and knowledge
industries with the vision to help enhance gathered has to be managed and
each industry’s performance by way of sharing
knowledge and insights. processed in order to derive value.
It is envisioned that IoT Malaysia be driven by

IoT Malaysia will create an IoT ecosystem
ICT industry associations such as the National
that focuses on the development of the IoT
ICT Association of Malaysia (PIKOM) and/or
industry in Malaysia. This set-up will also
the Federation of Malaysian Manufacturers
serve to facilitate collaborations between
(FMM) and other related ICT industry-based
stakeholders to ensure the continuity of
organisations, and work closely with various
activities within the industry.
Government agencies and ministries.
5.2.3 Organisation of IoT Malaysia: Initial

5.2.2 Purpose
setup and way forward
The purpose of establishing IoT Malaysia is to
To constitute a vital positive element of public
manage the ecosystem built around IoT – the
policy while representing the authoritative
players, technologies and the complex process
industry constituent, IoT Malaysia will
of creating, utilising, sharing and reusing the
initially be set up as a government-industry
said technologies and business knowledge.
partnership (refer to Figure 5.3) similar in
IoT Malaysia will comprise the industry,
nature to the successful Outsourcing Malaysia
the Government and academia. The set-up
58 chapter
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and Collaborative Research in Engineering, aligning to MCMC’s existing Digital Lifestyle

Science and Technology (CREST). Hence, Malaysia agenda. It is envisioned that IoT
it is proposed that IoT Malaysia be led by Malaysia be kick-started with initial seed
the partnership between the National ICT funding from the Government.
Association of Malaysia (PIKOM), SME
Corporation Malaysia (SME Corp), the Moving forward, once operational, the
Multimedia Development Corporation partnership should be an ecosystem that
(MDeC), the Malaysian Communications and is self-governed and self-sustained by the
Multimedia Commission (MCMC) and MIMOS,
Proposed Advisory Board Members
Executive Director
Support Services
Technology Industry IoT Talent Business

Development Development Development Development
• IoT for IoT Vertical Market-centric • Talent database • Marketing and

• Export compliance tests • Market research • Seeding Malaysian promotion activities
• Standards • Industry database talents • Promote Malaysia’s
harmonisation • Maintain and grow ecosystem to the global
• Matching programmes market
• Technology requirement talent pool
• Fund management
gathering
• Local content
• Incubation monitoring
• New technology solution • Lobby for “favourable”
policies
Figure 5.3: Organisation structure operations and governance

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industry. To ensure that this community growth of many new technologies and
performs its required functions with integrity standards. IoT Malaysia can be a forum
where benchmarked KPI can be assigned. to capture the industry’s technological
The community will then move along a value- challenges or problems to be solved by
based roadmap. respective experts.
a. Technology requirement platform for

5.2.4 Key Roles of IoT Malaysia industry-driven R&D - IoT Malaysia will
be the facilitator to collate technological
The key roles of IoT Malaysia shall be as follows:
requirements from the industry, and the
focal point of the industry harmonisation
5.2.4.1 As Malaysia’s Centre of Excellence platform. The inputs gathered are to
(CoE) for IoT be passed to relevant researchers in
research institutes and universities.
These inputs shall be one of the bases
i. Industry database: Managing and for future industry-driven R&D funding
promoting the ecosystem from the Government.
In order to organise the industry and to take b. Point of harmonisation of myriads of
it to the next level, an industry database standards - IoT Malaysia will be the lead
that consolidates all information on players, organisation for the community of IoT
products and solutions is to be set up. developers that is encouraged to work
on a common application programming
a. “IoT Yellow Pages” - The database interface (API) so that one enterprise’s
should serve as a single most products or services can communicate
comprehensive point of access to the with those of another. The platform will
players and supporters of the industry. thus promote conformity with universal
This database should be the selling requirements for standards and
point of Malaysia’s IoT ecosystem. specifications.
b. Connecting the dots - Through the iii. Shared services for industry development
database, IoT Malaysia will be able to in Malaysia
connect the players within the IoT value
chain and facilitate collaborations as IoT Malaysia should establish a centre
well as sharing of insights to ensure for IoT shared services with the intent of
continuity within the ecosystem, locally positioning Malaysia at the forefront of the
and internationally. IoT industry. The services can include:
ii. Platform to gather the industry’s a. Regional and inter-regional
technological requirements interoperability testing laboratory for
IoT (IoT for IoT) – A laboratory to test the
The fast-evolving IoT technologies across
interoperability between one system and
the globe will see the creation and
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another. This is to ensure that imported training programmes should incorporate

devices and systems will be able to IoT technologies, application and service
operate in the region without hiccups. development, system design and system
integration. Upskilling programmes should
b. Export compliance testing laboratory –
be provided to enhance qualities and skills
A laboratory to test the compatibility
among existing and new engineers and
and adherence to global standards for
researchers.
export purposes.
ii. Maintaining the talent database
c. Product customisation centre
– As part of talent development, IoT
– A centre of excellence for product
Malaysia should maintain and manage an
customisation activities. This centre
IoT talent database so that the country will
will also focus on training to upgrade
have a ready pool of competent IoT talent
the skills and competencies of
in all domains at all times.
Malaysian-based companies.
d. Incubation centre – A centre of activities 5.2.4.3 As a bureau for IoT industry
for startups and small enterprises to development
incubate breakthrough ideas that have
exceptionally high commercialisation IoT Malaysia is positioned to market an
potential. Ideally, startups undergoing established IoT ecosystem in the region and
incubation should also be housed within even globally through the following initiatives:
the same vicinity.
i. Market research in new market value
5.2.4.2 As a nucleus for IoT talent development creation - To sustain the growth and
development of the local IoT industry, IoT
With the aforementioned initiatives, Malaysia should continuously research and
IoT Malaysia is poised to be the talent explore the latest, not only in technology
development nucleus for the industry. Some but also business methodologies in
of the key roles of IoT Malaysia in developing tandem with the IoT industry’s exponential
talents towards building a strong industry growth. It should seek to ensure that all
ecosystem include: IoT entreprises focus on creating value,
such as enhancing the way people live,
i. Seeding Malaysian IoT professionals work and play while reducing the costs
– IoT Malaysia together with established of doing things. Finally, the organisation
players such as MIMOS, Cisco Academy should also ensure that all activities
and Microsoft Developer Academy will undertaken in the industry are geared
jointly develop the ecosystem through a towards sustainability and cause no harm
industry-designed training curriculum. The to the people and the environment.
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ii. Managing industry development grants chain to ensure that this burgeoning The Malaysian
– In order to continuously drive nurturing industry translates into economic growth
programmes for further growth, an by means of intensive utilisation of local IoT ecosystem
industry development fund should be expertise and resources. Intervention should be
allocated to IoT Malaysia. The fund strategies aimed at promoting and
should be assigned with specific goals boosting the utilisation of local content promoted not
and a set of KPI. It should be the role of in IoT should also be developed. This just as a cost
IoT Malaysia to ensure that a concerted is to ensure that only quality Malaysian
funding programme is available for products are distributed to the world
reduction-based
IoT technopreneurs of all calibres. The while the industry creates high-income vendor but as
funding should be end-to-end – from jobs for local talent.
conceptualisation to commercialisation
value-based
– initiated at the national level and v. Voice of the industry – IoT Malaysia partner to IoT
administered by IoT Malaysia. Priority for shall be the voice of the IoT industry. for the world.
funding should go to projects with high The organisation shall endeavour to
commercialisation potential. IoT Malaysia lobby to the Government for the easing
should monitor and report on all fund up or removal of any potential “show-
utilisation and progress of projects. stopper” and create enablers to ensure
the sustainable growth of the industry.
iii. Marketing and promotion – Strategic For a start, IoT Malaysia shall look at best
and active promotion of the Malaysian methods of releasing “community data” to
IoT ecosystem will generate demand enable greater application services to be
which in turn will broaden the market. developed by local developers. Examples
The Malaysian IoT ecosystem should be of community data are traffic conditions,
promoted not just as a cost reduction- prices of controlled items; and public alert
based vendor but as value-based partner and warning systems on water levels, flood
to IoT for the world. situations, and the environment.
iv. Local content utilisation monitoring – IoT

5.3 ESTABLISHMENT OF THE IOT OPEN
Malaysia should monitor the utilisation
INNOVATION FRAMEWORK
of local content in producing made in
Malaysia IoT solutions, to reflect the
government’s policies. All activities in 5.3.1 Introduction
the IoT value chain should integrate a
certain percentage of Malaysian human The IoT Open Innovation Framework, in
and material resources. IoT Malaysia summary, is a conceptual “sandbox” where
should monitor the level of local product/ all IoT-related technologies and standards
content utilisation across the IoT value are to play in a “harmonious” manner. As
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presented in the previous chapter, one of the Hence, it is of paramount importance to

key challenges in developing IoT technologies address the issues concerning technology
in Malaysia is the existence of a myriad of variety to ensure greater participation from
technologies as IoT evolves from existing technology-based SMEs.
technologies. As a result of the various
standards that exist in this knowledge sphere,
5.3.2 Purpose
it is expected that it will be a challenge for a
SME to effectively participate in IoT industry. The purpose of this proposal is to create a
framework that will harmonise technologies
The Technical Working Group (TWG) also in the current wave of IoT. In addressing
acknowledges that globally there are several this challenge, it is proposed that the Open
standardisation exercises taking shape, eight Innovation Framework be formed, followed
of which are becoming prominent standards. by examining and coordinating various smart
However, it is possible that there are several technology backgrounds – redundancies
variations of these standards due to economic and unrealised synergies are among
motivations of the companies or governments other important factors to consider. Next,
that support the standardisation exercises. standardisation work in the sandbox involves
Framework to Harmonise
Multiple Standards
Academia
• Panel of experts
• Collaborative projects
• Joint architecting Industry
• Shared IPs (MNCs)
Anchor Technology Driver
(Research Institutes)
Local
Industry
Framework for New

Technology Creation
• Market planning
• Collaborative projects
• Solution development
• Shared IPs
Figure 5.4: Open Innovation Framework structure

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developing appropriate solutions to produce a 5.3.4 Key goals of the IoT Open Innovation
common API and implement a management Framework
process that would harmonise IoT standards
and enable an assortment of smart devices to From the previous chapter, several challenges
communicate with each other. related to the technology need to be overcome
in order to propel Malaysia as a key IoT
country in the region. Here, key goals in the
5.3.3 Provisioning of the IoT Open Innovation implementation of this strategy are proposed.
Framework The goals are broken down into four major
goals that will contribute towards the
The Open Innovation Framework (refer
attainment of the vision.
to Figure 5.4) is an effort that combines
both technical and management aspects.
i. Framework to harmonise multiple
Learning from the success of the Open
standards - To achieve the goal, the IoT
Source Initiative in Europe, the Technical
Open Innovation Framework initiative
Working Group (TWG) recommends that
together with the Malaysian Technical
the IoT Open Innovation Framework to be a
Standard Forum (MTSFB) shall invite experts
member-based initiative with a key technology
of the Technology Standards committee,
organisations such as MIMOS becoming an
such IoT-A, IEEE, IETF and any other
anchor of the programme. The IoT Open
organisational standard, to contribute in
Innovation Framework will be driven by the
defining its standards. The intention of this
anchor organisation together with IoT players,
initiative is not to create a Malaysian IoT
local and international, to form a technical
standard, but rather to create a “framework”
working group with the immediate objective
that will be the “melting pot” of various
of harmonising the multiple standards of IoT.
standards and find key interfaces that will
Members of the technical working group shall
harmonise multiple standards. The key
comprise MNCs, service providers, academia
areas required at the commencement of the
and the regulators.
initiative are:
The IoT Open Innovation Framework does not • Formation of a panel of experts to define
just focus on the creation of the “technology the required technology architecture and
sandbox” but also focuses to become the the necessary technology interface. The
catalyst of new technology creation through panel of experts shall comprise both
the establishment key technologies versus local and global players.
the market requirements of the industry. The
outputs from the programmes implemented • Establishment of collaboration between
in the Open Innovation Framework will be IoT technologies providers, academia
managed and marketed by IoT Malaysia. and research institutions in sharing the
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Application Programming Interface (API) take products to market faster and more
and data formats. efficiently. The IoT-based capabilities of
industry players will also be strengthened
• Determining the distribution method of
as the framework allows innovative
the API.
connected solutions to be built for target
• Architecting and developing a security markets across industries.
mechanism for IoT in preserving data
• A software services framework provision
privacy for the user and enterprise.
to develop and expand market-demand
• Determining the commercial arrangement specialised services, value-added services
of shared intellectual property (IP). and other new service formats. This
framework addresses market needs to
ii. Framework to strengthen local offer proven, fully-integrated IoT services
technopreneurs’ competitive capability in for a variety of market verticals, operators
the IoT market and enterprises in order to simplify
The intelligent interconnection of devices deployment and ensure reliability.
and services provides huge benefits to
the people and the national economy. The combination of the application
However, one of the challenges towards platform and service framework and
the rapid deployment of IoT services and industry know-how will create a strong
commerce is the required talent in the value proposition for industry players
development of services and integration demanding fast, efficient and reliable
of applications and data. software development. Through the Open
Innovation Framework, the industry
The Open Innovation Framework will will be more capable to offer vertical-
provide a platform for industry players specific solutions that work seamlessly
to leverage and harness breakthrough across a range of applications with
convergent technologies to propel flexibility, scalability and compatibility.
Malaysia’s transition from starting stage This framework provides a competitive
to large-scale development stage. The advantage and new opportunities for
catalysts to accelerate the initiative are: industry players to diversify and increase
revenue streams.
• A software application development
platform for the development of
iii. Framework for new technology creation
applications and services in rapid time.
– The Open Innovation Framework will
This platform provides easy and efficient
be positioned as the channel for IoT
integration and utilisation of data and
Malaysia to resolve industry issues. Based
applications, enabling the industry to
on the inputs from industry players,
Sustainable Game Changing Strategies
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the technological challenges that they challenges in selecting suitable connectivity

are currently facing require intense technologies to facilitate data exchange
R&D activities such as the development and to deliver IoT applications in different
of new devices, integrated circuits vertical markets.
(ICs), protocols and materials. The
technologies to be created will be the key Cloud computing provides many economic
competitive advantage of the Malaysian advantages such as the elimination of
IoT ecosystem. Key steps required at the administrative tasks in computer systems
commencement of the initiative are: and associated costs. Its requirement of
high-speed, reliable Internet connectivity
• Planning a market entry strategy, and with sufficient bandwidth, high latency
formulating a business and enterprise and security is a double-edged sword
architecture to fit market needs. which heavily impacts the IoT paradigm
that envisages to have every device on the
• Establishing collaboration between
Internet if a link outage or blackout occurs
IoT technology providers, academia
rendering the total system unreachable.
and research institutions in
formulating solutions. Due to the heterogeneous and multi-
• Obtaining seed funding from the standard nature of IoT, some issues are
Government to kick-start R&D activities. expected to arise. Issues related to quality
of service remain the major concern for
• Determining the commercial arrangement many IoT applications; especially those
of shared intellectual property (IP). with critical latency, network bandwidth,
resilience, power, security, or geographic
iv. Driving heterogeneous and mobile
localisation constraints.
system architecture
The explosion in the number of intelligent, These issues can be addressed by making
connected devices is particularly available a federated cloud platform that
meaningful as the value of the data facilitates high mobility and autonomous
generated by these devices is explored.To service management requirements, one
derive maximum business insight and value that can respond to the market’s requests
out of massive amounts of machine data, swiftly while maintaining a strong Internet
it will be critical to quickly analyse and act connectivity. A federated cloud platform
upon the acquired data. is an additional layer of processing,
networking and storage between the
With numerous standards deployed in the endpoint and cloud which will help optimise
market spreading over multiple connectivity IoT by providing better quality of service
and protocols, this intensifies the with zero-delay, low power consumption,
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and significant reduction in data movement could result in the IoT industry being limited to
across the network resulting in reduced those that are project-based.
congestion, cost and latency as compared
to centralised computing systems. The The Technical Working Group (TWG) also
federated cloud platform offers integrated acknowledged that the data are subjected to the
perspectives on massive data storage and Personal Data Protection Act (PDPA). However,
communication needs for the execution of due to the broad definition of the act, there are
real-time services. It enables computing some data that is deemed public and can be
systems to be deployed very close to utilised for the greater good of society. Therefore,
end users in a widely distrbuted manner it is critical to review the data policies in view of
thereby providing the flexibility of on- the great benefits that it will offer to society.
demand provisioning of compute, storage
and network resources across wide It must be emphasised that the proposal will
geographical areas. not focus on lobbying for an amendment of the
existing PDPA, but rather on achieving a clearer
IoT requires both the federated cloud understanding of the process of preserving data
platform and cloud computing to work integrity within the context of PDPA.
synergistically and complementarily. The
federated cloud boosts emerging network
paradigms with faster processing and 5.4.2 Purpose
response while cloud computing markets
centralised processing and high-end, low- The purpose of this proposal is to create a
cost computing. framework that will mobilise the dataset
available for greater societal good. In
addressing this challenge, it is proposed that
5.4 Creation of the IoT Open Community the Open Community Data concept (refer to
Data Framework Figure 5.5) be adopted to allow greater data
mobility, where the data is shared in an open
5.4.1 Introduction manner to enable a productive IoT industry.
In essence, the IoT Open Community Data Using this model, greater value can be
proposal is a recommendation for the realised from data mobilisation. In summary,
mobilisation of public data to spur the growth the proposal is about sharing the data for
of the Malaysian IoT industry. As mentioned in the use by the IoT industry in general. For a
the previous chapter, one of the key challenges start, generic data such as those related to
that may hamper the growth IoT technologies improvement of society (e.g. traffic information,
in Malaysia is the existence of data silos, which environmental situations and food- and health-
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related) should be opened up for the creation of • Protection of fundamental rights, with
new apps and services by the industry. particular reference to the protection of
privacy and personal data
To date, several countries have established open

data policies. Along with official government-
sponsored websites, there are numerous
unofficial sources of government data – usually
compiled by individuals or communities – or
aggregators, such as DataCatalogs.org, which
publishes hyperlinks and datasets from many
public sector organisations.
A study in 2013 indicates that a total of 49

countries now have more than 220 distinct
official or unofficial open data websites, which
provide downloadable public datasets at
national, local or city level. Leading countries
in opening up data are the United Kingdom,
the United States and Canada. A research
Supplies data to by Policy Exchange (March 2012), a leading
Uses data to deliver to European think tank, presented examples of
different types of open government data as
Figure 5.5: Open Community Data concept illustrated in Table 5.1.
Source: Deloitte (2012)1

The Open Community Data platform can
be used to enhance data already held by
businesses. This works both for intra-
5.4.3 Overview of the Open Community Data industry and inter-industry. For instance,
Concept businesses offering transport services to
customers can combine their own data with
In order to see a robust growth of IoT-based
those from the public transport network to
technology, the key challenge that needs to
provide tailored itineraries, and healthcare
be address is the sharing of public data. Key
providers can use public healthcare,
considerations are:
demographic and social deprivation data in
• The market requirements of public data combination with their own data to configure
their services more accurately to serve
• Common commercial policies client needs.
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Type of Data Public Sector User Example

Management of • Various departments • Departmental accounts and organisational
information and other • Government agencies and non- structures
operational data collected departmental public bodies • Registers of public property
or created as part of
day-to-day business of the • Local government institutions • Public spending data
Government • Non-personal data related to health and
education systems
• Calendars of public holidays and other key
administrative information
Geographic and other • Emergency services • Maps and charts
data describing physical • Military • Meteorological data
and environmental
characteristics of Malaysia • Coastguard • Hydrographical data
• Smart rescue • Postcode and address data files
• Environment agency/departments
Administrative data • Tax and welfare administration • Company registrations
describing the business • Planning authorities • Land and property registrations
environment and public
realm • Courts and justice system • Planning data
• Vehicle and mileage data
Data related to public • Public transport operators • Timetables
transport networks and • Public infrastructure bodies • Fare schedules
transit systems
• Planned and emergency works
• Transit loading data
National statistics • Whitehall departments • National accounts
describing Malaysia’s • Government agencies and non- • Surveys of attitudes and behaviours
economy, state and society departmental public bodies • Other statistics collected for analysis and/or
• Local government institutions public record
Data created in the course • Universities and other educational • Various mass datasets
of conducting publicly- establishments • Published research
funded research
Table 5.1: Public data universe
5.4.4 Key goals of Open Community Data need to be addressed, such as the sharing
of infostructure, concerns of privacy and
Although the concept of data sharing may be security issues, multiple data formats, data
viewed as trivial, there are several areas that validity and veracity, and business models.
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This section highlights the key goals for the envisioned that DAS be jointly managed by
implementation of this strategy: all service providers under the supervision
of MCMC.
i. Establishment of Open Community
Data definition – The definition of the The huge amount of data handled by DAS
community data is critical to kick- is only valuable if the data is dissected to
start Open Community Data initiatives. its core and analysed to derive valuable
A consortium of industry experts, and actionable insights. This will further
academia and the Government is to fuel advanced analytics platforms such
be formed to derive the definition. The as Big Data Analytics to respond to the
consortium is to be placed under the challenges and opportunities created by
leadership of the proposed IoT Malaysia IoT for specific industries.
and regulated by MCMC. iii. Managing the commercial aspect of data
– As data becomes an economic source,
ii. Setting up the Data Aggregator System a clear business model is to be defined
– The purpose of the Data Aggregator beforehand for new value creation and new
System (DAS) for Open Community Data revenue streams for market participation.
initiatives is to alleviate the concerns of At this juncture, IoT Malaysia is the most
data security, privacy and traceability. In appropriate organisation to coordinate
addition, DAS shall organise multi-data the efforts to define the business model,
format into a standard format. and valuate and manage the commercial
It is pertinent to note that DAS is not aspects of the data aggregated through
intended to be a public data warehouse the Open Community Data initiatives.
or data centre but rather a necessary
infostructure to aggregate data from the 5.5 Implementation
original source. Hence, the data that is
linked to DAS shall remain in its original This chapter has presented a set of
location and format. Data owners will strategies that will propel Malaysia to the
grant permission to DAS to maximise forefront of the regional IoT industry. The
the allowable dataset. Through DAS, set of strategies proposed in building the
data owners and regulators of PDPA are IoT industry ecosystem will give Malaysia a
assured that the data collected is not competitive advantage in the region. Taking
tampered with. into consideration factors of infrastructure,
regulatory climate and technology
The DAS operation has been tested in implementation, it is expected that upon the
an actual environment in the Ministry implementation of the strategies mentioned
of Science, Technology and Innovation above Malaysia will gain three to five years of
(MOSTI)’s KRSTE.my system. It is advantage ahead of any country with a similar
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investment climate. That notwithstanding, The following timeline and strategy champions
the formation of think tank laboratories is are recommended for implementation:
still required to further deliberate the details
of the implementation.
Proposed
Strategy Fund Commencement
Champion Manager
IoT Malaysia PIKOM, MCMC, PIKOM • Seeding by the Government of Malaysia July 2015
SME Corp. & • Self-funded operation after fifth year
MDeC
Open Innovation MIMOS & Industry IoT Malaysia • Seeding by the Government of Malaysia July 2015
Framework
Open Community MIMOS & Service IoT Malaysia • Seeding by the Government of Malaysia Jan 2016
Data Framework Providers • Industry-funded
Table 5.2: Implementation plan
Endnotes
1 Deloitte. (2012). Open data. Driving growth, ingenuity and documents/market%20insights/deloitte%20analytics/uk-
innovation. Deloitte LLP. Available at: http://www.deloitte. insights-deloitte-analytics-open-data-june-2012.pdf
com/assets/dcom-unitedkingdom/local%20assets/
Way Forward and Outcomes
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chapter 06
Way Forward and

Outcomes
72 chapter
06
chapter 06
Way Forward and

Outcomes
The National IoT Strategic Roadmap will be 6.1 Way forward: Development of the
the opening chapter in preparing Malaysia Implementation Plan
to be one of the key players in the global
IoT arena. In order to ensure the rapid and 6.1.1 Focus areas
sustainable growth of the IoT industry, this
document outlined the implementation This document has outlined the key strategic
challenges, and action plan proposals to initiative and goals towards positioning
address the challenges in a systematic, Malaysia as a key player on the world
principled and solutions-oriented manner. IoT map. It serves the purpose of getting
different parties and initiatives onto a “single
The strategies proposed in this document page”. Despite the challenges of coping
have been largely developed based on the with fast-paced technologies and obtaining
Triple Helix model, a dynamic framework relevant critical information, the Technical
for the interaction of research institutions, Working Group (TWG) believes that the set of
industry, academia and government towards strategies and goals proposed will present an
a knowledge-based economy. The positioning ideal launching pad for the development of
of the institutional spheres with respect to more detailed implementation plans.
each other and their potential for movement
illustrate the dynamics of this model, with The immediate step after launching
one stakeholder serving as a gravitational this initiative should be the formation of
centre around which the others rotate; the thinktank laboratories with objectives
government and academia as ancillary to shape sector-specific strategies,
support structures, with the industry being draw a detailed timeline, and develop
the driving force to unleash the potential and implementation plans with project owners.
accelerate the growth of technologies; in this Table 6.1 will serve as a guideline for the
instance, IoT. thinktank laboratories to deliberate the
implementation plans in detail. These
plans will include funding requirements,
investment and talent, among others.
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0
The focus area proposal has placed 6.1.3 Delivering pilot projects
emphasis on sectors with the highest
potential to contribute to the country’s To ensure the identified IoT pilot projects
development by 2020. These contributions are expandable and sustainable, ideation
are based on investments, gross national and syndication exercises with relevant
income (GNI) impact, and job creation. As stakeholders will be conducted regularly.
key economic growth engines of the future, Focused initiatives will enable stakeholders
the identified focus areas are expected to address the challenges associated with
to receive prioritised policy support and scale and quality, by leveraging shared
investment. The focus areas also mean resources and jointly mitigating risks.
that the performance of these sectors can
be more accurately measured to ensure A system will be developed to collate, track
timelines and targets are met. and monitor the progress and development
of projects of respective sectors. The
information gathered and insights derived
6.1.2 Championing IoT will be imperative in forming the basis for
refinement of the projects towards efficient
To attain maximum buy-in and promote
delivery of desired results.
mindset change at all levels towards realising
IoT at its most optimal level, it is crucial
to maintain constant communication and 6.1.4 Monitoring mechanism
interaction among the stakeholders (i.e. the
Government, industry and citizens). “Game- To ensure the IoT initiatives are citizen-
changing champions” – leaders in catalysing driven – ideas from the citizens for the
thought and behavioural shifts – will be citizens – it is essential to identify priority
selected to help encourage behavioural areas of the people. Input from members
change among all Malaysians at large. of the public – through opinion polls,
Efforts will include establishing appropriate perception surveys in mainstream and
thought leadership platforms as a channel of alternative media, media analyses, as
communication, interaction and engagement well as dialogue sessions involving select
among stakeholders. academicians, private and public sector
leaders – need to be considered.
At this juncture, four pilot projects
comprising participants from the public and Action items and timelines are made clear at
private sectors will be selected. The pilot every stage of implementation, and project
projects serve as the beacons of change and owners should be in constant contact with IoT
lead the way for others to emulate. Malaysia. The communication activities for
each project team should comprise:
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• Monthly IoT Steering Committee ranging from devices, networks and

meeting to ensure that challenges tools. To ensure the success of new
are resolved, directions are set and products and services based on ubiquity
decisions are made and interconnection, new testing
mechanisms are required to validate
• Fortnightly IoT Investment Committee
the interoperability between devices,
meeting to determine fiscal matters,
between software, and between systems.
funding and incentives
With the ecosystem to be formed, testing
• Weekly IoT Council meeting chaired by the facilities will become a new industry
Science Advisor to the Prime Minister, to spawning out of IoT, and areas such as
deliberate on unresolved issues escalated interoperability, standard compliance
from the Steering Committee and and export-related testing can lead to
Investment Committee meetings new economic sources. This will further
uplift the competitive advantages of
• Annual progress reports for accountability
homegrown solutions.
of delivering the targets set in the
individual roadmaps, and for the ii. Software development standardisation
evaluation of achievements
Standardisation is one of the critical
• Open and constant feedback between
success factors for IoT, and the
industry players and policy makers to help
complexity of IoT resulting from the
enhance features of the initiatives
myriad of technology and standards
can turn out to be rewarding for the
6.2 Outcomes software industry in Malaysia. The
number of IoT standards today is more
6.2.1 New industry than it should be, resulting in the same
impact as having none at all. Today,
Arguably, IoT will be the transformative and there are various alliances attempting
pervasive driver of change and improvement. to harmonise the numerous standards.
This exciting technology revolution will also Studies have estimated that it will take
add new dimensions to the industry in the about five to seven years for the industry
following ways: to standardise the multiple standards.
Thus far, the industry’s “quick fix” of
i. Test facilities the situation is by promoting the use of
a common Application Programming
IoT is powered by a convergence
Interface (API), which is able to serve
of technologies at different layers,
as an intermediate solution to address
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chapter
06
standard silos and facilitate the creation real-time. The result will be new ways
of niche applications and services. of making decisions, backed by the
availability of information. Moreover, shifts
With the complexity of IoT in production and consumption patterns
standardisation and increasing market will be noticeable and will potentially be
demand, API development is expected changing the relations among all members
to open up new opportunities in the of the ecosystem due to the effect of
software development industry in digitalisation of business processes.
harmonising multiple standards
and addressing multiple market With IoT, entrepreneurs will be equipped
implementations. with devices capable of identifying
efficient problem-solving alternatives and
iii. System integration services distributing them efficiently thanks to
permanent and ubiquitous connectivity.
Another prevalent opportunity
This development enables collaboration
expected to stem from the proposed
and interaction between different agents
IoT ecosystem is system integration
across the network. As part of the
services. With the bold strategies
possibility of being permanently connected
proposed in this document, it is
and traceable, a new generation of
anticipated that Malaysia’s IoT
consumers – who expect IoT to facilitate
ecosystem will be able to harness a new
everything they do – will emerge. Tapping
system integration experience. The IoT
on the ubiquity and pervasiveness of IoT,
opportunities developed in the country
new-generation networking and analytical
will motivate entrepreneurs to master
platforms will break down walls between
new skillsets through their interaction
operational domains to spur integration,
with end users, service providers, device
collaboration and creativity between
manufacturers, technical experts from
producers and consumers.
MNCs, and application developers. Over
time, the holistic approach proposed for
the ecosystem will produce an army of 6.2.3 Reconfiguration of regulatory
system integrator experts. framework
The dynamic of change of the technologies

6.2.2 New interaction methods involved in IoT will require removing data
sharing limitations and boundaries to
IoT will make it possible for everybody and
maximise the benefits of IoT. Inappropriate
everything to be connected at all times,
regulation could stifle innovation and
receiving and processing information in
76 chapter
06
Goal Strategy Short-Term Mid-Term Initiative Long-Term

Initiative (2018-2020) Initiative
(2015-2017) (Beyond 2020)
1. Create a conducive Enhance the regulatory framework to 5.4.4 (i); 5.4.4
5.2.4.3 (iv); 5.2.4.3 (v)
IoT industry cater for IoT technologies (iii); 6.2.3
Strengthen institutional support in
areas of technology and standards 4.4.1 5.2.4.1 (i)
development
Leverage on existing initiatives and
5.2.4.1 (ii); 5.2.4.1 (iii);
infrastructure to facilitate the creation
5.2.4.3 (ii)
of the IoT industry
2. Strengthening Develop SME capabilities to kick-start
4.4.2 6.2.2
the capabilities of the IoT industry
technopreneurs
in the apps and Incubate SME competencies through 4.3.1; 4.3.2; 4.3.3;
5.2.4.3 (i); 6.1.1 6.1.4
services layer focused ‘flagship’ projects 4.3.4
Development of key talents 4.4.3 5.2.4.2 (i); 5.2.4.2 (ii)
3. Malaysia as the Promote Malaysia as the key ‘showcase’ 5.2.4.3 (iii); 6.1.2;
Premier Regional country 6.1.3
IoT Development
Hub 5.3.4 (i); 5.3.4 (ii);
Promote Malaysia as the integrator of
5.3.4 (iii); 5.3.4
IoT solutions
(iv); 5.4.4 (ii)
Position Malaysia as the centre for the
6.2.1
IoT outsourcing services industry
Remark: The numerals indicate reference points of initiatives detailed in the respective chapters and sections. For example, the
first digit indicates the chapter while the second digit is the subsection, the third and subsequent digits are the next levels of the
corresponding subsections.
Table 6.1: Implementation plans timeline
cripple the development of IoT business critical to satisfy various stakeholders in

models. Consumers, on the other hand, are the ecosystem.
uneasy about the potential impact of IoT in
areas such as data protection and privacy. Among the top concerns are data protection
Thus, a new model of IoT governance is and privacy. With billions of connected
needed allow to innovation and promote devices envisaged within the next decade
the benefits of IoT, while at the same time or so, many of which will be directly linked
protecting consumers. Balancing act is to citizens in their homes or vehicles,
77
chapter
06
the scope for personal data requiring for hyperconnected things, will likely be one
protection is vast. The people need a degree of the major technological advances of this
of comfort, and businesses need stability. century, and offers “value for many” through
Thus, the Government needs to educate embedded and ubiquitous intelligence. More
citizens about IoT and how they can take importantly, IoT is evidently taking shape and
advantage of this technology without fear of dramatically changing the lives of individuals
security or privacy breaches. and communities. Additionally, increasing
numbers of business communities across
the world are venturing into the use of IoT
6.3 IoT for Malaysia
to enhance routine operations, and in the
IoT, the talk of the town across the globe pipeline are streams of IoT-related products
with the dynamics of technology designed and services.
Vision
Premier Regional IoT Development Hub
IoT Malaysia Open Community Data Framework

1. Create an IoT ecosystem that will focus on the A secure environment for open data sharing across
development of the IoT industry in Malaysia communities and foster collaboration between service
2. Facilitate collaboration between stakeholders to
providers and data aggregators Game-
ensure continuity within the ecosystem Changing
3. Nurture and grow IoT professionals in Malaysia
Open Innovation Framework Strategies
4. Create talent supply A common technology platform for the innovation of
applications and services development, and cross-
industry participation
Industry Infrastructure &

Funding & Incentives
Standardisation Connectivity
Enablers
Legislation & Education &
Talent Capital
Regulation Awareness
Figure 6.1: Vision of IoT for Malaysia

78 chapter
06
Looking ahead, consumer, government and endeavours. These thrusts comprise: IoT
business trends are leading toward IoT. Malaysia to create and sustain the ecosystem,
This is not without its share of challenges Open Community Data Framework for open
and concerns such as information security data sharing and Open Innovation Framework
and privacy, information storage and for a common technology platform. The
management and the digital divide, just to enablers shall harness the intrinsic values
name a few. Therefore, it is imperative that of the three strategic thrusts towards the
the growth of IoT in Malaysia occur within institutionalisation and recognition of Malaysia
an ecosystem driven by three key strategic as the Premier Regional IoT Development
thrusts that establish a framework for its Hub. This is shown in Figure 6.1.
appendices
79
appendix
01
appendices
Information listed in Appendices 1-3 is not exhaustive and only serves as reference points.
80 appendix
01
appendix 01
Global Concepts of Internet of Things

Adding radio frequency identification and other sensors
to everyday objects will create an Internet of Things
Every physical thing in this Internet of Everything:

world can also become a Bringing together people,
computer that is connected process, data and things to
to the Internet make networked connections
more relevant and valuable
The network of physical than ever before
objects that contain
embedded technology to Networked Society where
communicate and sense or all aspects of people’s lives,
interact with their internal the operations of enterprises
states or the external and society in general are
environment impacted by the proliferation
of communications
The collection of smart,
sensor-enabled physical This convergence of machine
objects, and the networks, and intelligent data is known
servers and services that as the Industrial Internet,
interact with them and it’s changing the way we
work
Internet of Your Things:
Gather data from the edge Connected Intelligence:
of the network, process Transformational shift from
it and serve it securely the computing nexus to
through engaging apps that highly intelligent nodes –
drive real-time analysis and when intelligence massively
actionable opportunities that scales, and the nodes have
would otherwise be out of the power to learn, adapt and
reach communicate
More and more devices and

systems will be capable
of sending and receiving
data automatically via the
Internet
appendices
81
appendix
01
Things with identities Increasingly smart and

and virtual personalities connected products which
operating in smart spaces can generate value in entirely
using intelligent interfaces to new ways as streams of
connect and communicate real-time operational data
within social, environmental are captured, analysed and
and user contexts shared
A wireless and self- A System of Things - M2M

configuring wireless connectivity, cloud platform,
network between objects, device management, big
such as household data management, event
appliances stream processing, predictive
analytics, and apps
An ultra-connected
environment of capabilities An intelligent, invisible
and services enabling network fabric that can
interaction with and among be sensed, controlled
physical objects and their and programmed; IoT
virtual representations products employ embedded
technology that allows them
Improving the ways people to communicate, directly or
connect with information indirectly, with each other or
the Internet
Embedded with increasingly
sophisticated software and Internet of Everything:
instrumentation, able to We call this the Digital Sixth
connect to other devices and Sense; we believe that when
fully capable of responding devices, places and people
intelligently to user needs are intelligently connected,
the impact on your daily life
Building intelligent devices, can be profound
creating systems of systems
Sources: http://postscapes.com/internet-of-things-key-
by connecting legacy devices players-large-companies; http://web.mit.edu; http://
to the cloud, and enabling kevinjashton.com; http://ec.europa.eu; https://gigaom.com;
end-to-end analytics http://www.ibm.com; http://www.thingworx.com; http://
www.ti.com; https://www.qualcomm.com; http://www.itu.
int; http://www.gartner.com; http://www.microsoft.com;
http://www.bosch.com
82 appendix
02
appendix 02
Global
Implementations
of IoT
1. USA the development of the European IoT
community. In European countries such as
USA, one of the world’s IoT leading Russia, smart cities are deployed through
countries, deployed SmartAmerica to a number of pilot projects that use RFID
facilitate the smart cities initiative for its technology, pre-installed GSM/GPRS Glonass
citizens. SmartAmerica enables people equipment for vehicles, constructions of
and organisations to contribute IoT-related smart parking systems, NFC pilot projects
innovation with the purpose of technology in Moscow Metro and payment terminals,
commercialisation potential1. The IoT M2M launches of services using special SIM
initiatives for SmartAmerica range from cards, and devices such as GPS trackers
smart homes, manufacturing, healthcare, for different target groups of consumers.
energy, transportation and disaster Spain, through their smart city project called
response, government, aeronautics, and SmartSantander, is also developing an IoT
social media2. Global players such as Apple, testbed in the city of Santander. A project
IBM, GE and Intel are encoring IoT initiatives under the Future Internet Research and
by launching IoT devices via crowdsourcing Experimentation initiative, fully supported
initiatives, business accelerators and by the European Commission, represents a
venture capital funding. city-scale experimental research facility and
supports typical applications and services
2. Europe of a smart city4. In Germany, automakers
are leading the way to connect drivers and
In Europe, extensive deployment of IoT is their cars to the Internet. Mercedez-Benz is
underway to consolidate cross-domain working on a door-to-door navigation system
activities of research communities and that allows users to input destinations in
organisations. Under the European Google Glass and connect their phone to
Commision’s Seventh Framework (EU-FP7) a vehicle so data is transferred to an in-
support, the European Research Cluster on dash navigation system. Upon reaching the
the Internet of Things (IERC), for instance, destination, users can simply disconnect
is now becoming a contact point for IoT their phone and all navigation details will be
research in the world3. Other initiatives transferred back to Google Glass and switch
such as the IoT Initiative (IoT-i) which was to walking directions as needed. BMW’s
established in 2010 is also actively supporting ConnectedDrive platform connects a car
appendices
83
appendix
02
to the Internet and allows both driver and be the next generation of mobile Internet
passenger to get directions, receive real- services 7. This collaboration will develop
time information about the car’s system and systems, set standards and get radio
browse the Internet. frequencies ready to accommodate the new
technology by end 20158.
3. Japan5
5. China9
Japan has ventured into smart city initiatives China’s Ministry of Industry and Information
in four project sites involving large-scale pilot and Technology (MIIT) estimated that China’s
projects on smart grid and smart community. IoT market will hit 500 billion yuan (US$80.3B)
The city of Yokohama and Kansai Science City by 2015 and will double by 2020. China’s
initiatives focus on home energy management latest five-year plan has placed IoT as a key
that control energy flows in homes and offices, strategic national industry initiative for the
and also on electric vehicles. The city of country which specifically focuses on smart
Kitakyushu is also eyeing energy management grid, intelligent transportation, smart logistics,
which focuses on new energy sources such smart home, the environment and safety
as solar, wind and hydrogen. Other than testing, industrial control and automation,
these three cities, the Toyota City initiative healthcare, fine agriculture, financial services,
concentrates on transportation and household and military defence. With an investment
sectors by having a low carbon social system plan of 5 billion yuan (US$800 million) in
via homes and cars. the IoT industry in 2015, the government is
looking into IoT to deal with food safety issues
4. Korea and healthcare in remote areas. China is
also working on a project called Agriculture
Korea has been progressively pursuing IoT Internet of Things and Food and Safety Quality
initiatives since the 2000s. Its smart city, that tracks and traces agriculture from
Songdo, is nearing completion and once the field through the supply chain and food
established will be an exemplary model for processing environments.
other smart cities in a world that is wired,
connected and monitored by computers, 6. Canada10
with little or no human intervention6. As
part of its enhancements in information Canada has started an initiative called
infrastructure, Korea has also begun to i-CANADA to make all its communities
invest in grid infrastructure and joined into intelligent communities by employing
forces with the European Union to develop e-health, e-work, e-commerce, e-education
a so-called 5G network, which claims to and e-government towards sustainable
84 appendix
02
prosperity via full digital enablement. In in the global market12. In 2005, in order to
addition, Toronto has been selected as the enhance the competitiveness of key economic
location for one of four global Cisco Internet of sectors and build a well-connected society,
Everything (IoE) Innovation Centres which will a high-level steering committee convened to
serve as a global hub for thought leadership spearhead the development of Singapore’s 10-
and solutions development. year masterplan (iN2015) focusing on growing
and using technologies of the infocomm
sector. iN2015, a living blueprint, shall fuel
7. South Africa11
creativity and enable innovation among
In South Africa, led by the Council for businesses and individuals by providing an
Scientific and Industrial Research (CSIR), the infocomm platform that supports enterprises
Internet of Things Engineering Group (IoTEG) and talent. In this, businesses, individuals
aims to position the country in this new and communities shall be connected by
Internet. This is to ensure that it capitalises the harnessing of global resources and
on the opportunities provided in providing a capabilities for Singapore to export ideas,
low-risk avenue to evaluate and develop IoT products and services globally13.
solutions within its context. Its IoT projects
focus on connecting smart things through 9. India14
sensors. Technological solutions are also
being applied to enhance energy efficiency In India, the IoT Special Interest Group (SIG)
and enable smart environments. gathered a range of startups and stakeholders
to discuss opportunities in IoT, establish
an ecosystem for IoT activity and facilitate
8. Singapore
networking and mentoring. Identified IoT impact
Singapore, a highly connected and evolved areas and sectors include transport, wellness,
nation with digital infrastructures and healthcare, buildings, homes, factories,
societies, is focusing in areas such as agriculture, livestock, electric grids, water supply
wireless technology, smart products and networks and individual consumers. In terms
smart communities. Current efforts from its of entrepreneurship, some are at the startup
government and various corporate entities as stage such as SenseGiz.com in Belgaum that
well as an increasing consumer adoption rate developed a range of tags and sensors that can
contribute to the growth of its digital domain be attached to a human body.
appendices
85
appendix
02
Endnotes
1 Let’s Make America’s Things Smarter. Available at: 9 Junyu Wang and Hao Min (2013). Improving Food Safety
http://www.huffingtonpost.com/kathy-kemper/lets- and Quality In China, RFID Journal. Available at: http://
make-americas-things_b_5457184.html www.rfidjournal.com/articles/view?11034 (retrieved 3
2 Ibid. July 2014)
3 European Research Cluster on the Internet of Things 10 Canada, Russia Work Together to Create Smart
(IERC). Available at: http://www.internet-of-things- Communities. Available at: http://www.cata.ca/Media_
research.eu/ and_Events/Press_Releases/cata_pr05181201.html
4 Sanchez, Luis, et.al. (2014). SmartSantander: IoT 11 South Africa Internet of Things Engineering Group.
experimentation over a smart city testbed. Computer Available at: http://ioteg.meraka.csir.co.za/ioteg/home.se
Networks, 61. am;jsessionid=8C655B5A64B2ADBBAC2D568B131EC894
5 Japan’s Smart City Initiatives: Four Models Areas that 12 Singapore Digital Universe to Grow 8 times by 2020.
World Can Watch. Available at: http://smartgridinsights. Available at: http://www.digitalmarket.asia/singapores-
com/news/japans-smart-city-initiatives-four-model- digital-universe-to-grow-8-times-by-2020/
areas-the-world-can-watch/#sthash.HFUI5qfX.dpuf 13 Info-communications Development Authority of
6 Shin, Donghee, (2014). A socio-technical framework for Singapore (2010). Realising the iN2015 vision. Singapore:
Internet-of-Things design: A human-centered design for Intelligent nation, a Global city, powered by Infocomm.
the Internet of Things. Telematics and Informatics, 31. 14 Madanmohan Rao (2014). Internet of Things (IoT): How to
7 EU and South Korea to develop 5G mobile network. tap the $12 billion market in India, Your Say. Available at:
Available at: http://www.ft.com/cms/s/0/37eed44c-f538- http://yourstory.com/2014/06/internet-of-things/
11e3-91a8-00144feabdc0.html#ixzz39bV1yYXG
8 EU, South Korea to Ally on Faster Mobile Access.
Available at: http://online.wsj.com/articles/eu-south-
korea-to-lay-out-plan-for-5g-networks-1402844523
86 appendix
03
appendix 03
Malaysia’s IoT-related
Activities and Initiatives
1. Government-led initiatives is continuously working with ICT industry

players, stakeholders and other government
1.1 Malaysian Communications and agencies4. To further facilitate its development
Multimedia Commission (MCMC) in Malaysia, MDeC incorporated cloud
computing as one of Digital Malaysia’s eight
MCMC, as the regulator for converging projects under the Multimedia Super Corridor
communications and multimedia industries, (MSC) Malaysia initiative5.
has been tasked with the national policy
objective of establishing Malaysia as a global MDeC is also the driver of the National Big
centre for communication and multimedia Data Analytics (BDA) initiative for MCMC
information and content services1. Part of its which was mandated by the Prime Minister
initiatives include Digital Lifestyle Malaysia during the 2013 25th ICM (Implementation
which involves nurturing local IT resources Council Meeting) for MSC. Several stakeholder
and harnessing IoT technologies to promote engagement sessions have since been
a society where info-based products and executed and the National DNA Framework
services provide the basis of continuing will be one of its deliverables for 20146.
enhancements in quality of work and life.
MDeC has also initiated the Smart City
Solution Initiative as an extension of the ‘Grow
1.2 Multimedia Development Corporation the Embedded Systems Industry’ project which
(MDeC) incorporates IoT solutions where transport
In realising IoT initiatives, MDeC in its role and energy are the current focus areas. As
as the driver of national ICT initiatives, has insights for solution providers for application
committed to facilitate IoT striving towards a and service development, stakeholder
digital economy in Malaysia by 20202. MDeC requirements gathering processes have been
and Intel are now partners in outlining a kick-started among the Iskandar Regional
strategic vision for the Internet of Things Development Authority (IRDA), municipal
in Malaysia. As a result of this partnership, councils and property developers.
a framework shall guide Malaysia’s digital
entrepreneurs to secure stakes in the Under Digital Malaysia, MDeC has formulated
IoT business3. Also, in driving the cloud a project ‘Develop a Trusted Mobile Digital
computing revolution in Malaysia, MDeC Wallet System’ which is a virtual wallet beyond
appendices
87
appendix
03
payment purposes including non-payment asset for startups and entrepreneurs to

applications such as authentication and utilise when venturing into IoT.
loyalty. This project supports the direction
towards a cashless society and attempts to
1.4 Malaysian Investment Development
spur e-commerce and m-commerce and
Authority (MIDA)
aligns with the National Digital Economy
Initiative, for the convenience of society and Backed by over 40 years of experience
towards a digital lifestyle7. in the electronics industry, Malaysia has
sufficient capabilities and resources to
In the National Digital Economy Initiative get involved in the IoT segment through
(NKEA) for the Electronics & Electrical design, manufacturing processes, research
sector, EPP 17 ‘Grow the Embedded Systems and development, robotics and software
Industry’, MDeC, as the public sector development activities10. In an initiative to
champion, developed several ecosystem support IoT, MIDA, a government agency,
development strategies, talent programmes attracts MNCs to invest in the design
and training for the embedded systems and manufacture of IoT devices while the
industry. The early adopters for embedded Government plays a catalyst role by supporting
systems included transport, energy and via the provision of facilities, necessary
industrial sectors. MDeC has since identified infrastructure and human capital11.
more than 100 embedded systems-capable
local companies and 20 of which have been
profiled. Aside from local players, MNCs were 1.5 CyberSecurity Malaysia
also encouraged to participate in embedded
systems. In the pipeline is a roadmap for the In protecting and securing data and
embedded systems industry8. information, the national cybersecurity
government agency, CyberSecurity
Malaysia, has the task of preventing or
1.3 Malaysian Global Innovation and minimising disruptions to critical information
Creativity Centre (MaGIC) infrastructure to safeguard and protect
the public, the economy and government
MaGIC was designed to become a one- services12. Specialised cybersecurity solutions
stop centre for entrepreneurs and provide have been developed which provide access to
every facility that entrepreneurs would a wide variety of tools and education in order
require. These facilities range from to assist proactive or forensic investigations.
obtaining funding from banks or venture For IoT, what this means is that although
capitalists to the provision of incubators for more and more devices are being connected,
developing startups in product and service citizens can rest assured that their data are in
improvement9. This will be a huge exploitable safe hands.
88 appendix
03
2. Industry-led initiatives 2.2 Cloud infrastructure-related initiatives
In IoT comes cloud infrastructure where

2.1 Telekom Malaysia Berhad (TM)
other industry players such as SKALI
VADS Berhad, a wholly owned subsidiary of Cloud Services and JARING offering ultra-
Telekom Malaysia Berhad (TM), supports flexible and scalable cloud servers and
cloud services technology in Malaysia and is hybrid infrastructure cloud services for
Malaysia’s largest data centre provider with mission-critical cloud hosting services and
14 data centres nationwide and one global on-demand high-performance computing
data centre in Hong Kong. VADS collaborated services respectively17.
with MIMOS to develop an orchestration
platform to offer cloud computing services to 2.3 Energy-related initiatives
the public13. TM itself also expanded its cloud
services through the inclusion of Microsoft As part of Malaysia’s smart grid initiative,
Office 365 as part of TM’s Software-as-a- Tenaga Nasional Berhad (TNB) embarked on
Service offering14. a smart meter project to address the demand
for power. During the one-year pilot project,
In terms of IoT initiatives, TM is neck-deep TNB has since installed over 1,000 advanced
in IPTV and has commenced its forage into smart grid meters in Putrajaya and Malacca.
delivering better medical support services Its university, Universiti Tenaga Nasional
and security enhancements to Internet- (UNITEN), in collaboration with EnVerv, a US
ready homes15. In the area of ‘sensible and semiconductor manufacturer, will be engaged
sense-able information’, TM has made efforts in IoT in the areas of smart sensors, active
in data mining, analytics and visualisation lighting, next-generation solar and advanced
solutions, and applying artificial intelligence smart grid in talent development and the
to data produced by smart appliances. Adding delivery of production-grade designs18. Over
to this, TM, in a joint venture with UEM the past four years, EnVerv and UNITEN
Sunrise and Iskandar Innovations Sdn Bhd have been conducting field tests in smart
(IISB), a wholly owned subsidiary of Iskandar grid communications over low voltage and
Investment Berhad (IIB), aims to offer and medium voltage power lines in different cities
operate smart services in Nusajaya as part of throughout Malaysia. Herein, UNITEN is
their IoT initiatives16. uniquely positioned to lead research in smart
city technologies, smart sensors and smart
grid communications, and rapidly develop,
prototype and field trial these technologies
within UNITEN’s smart city testbed.
appendices
89
appendix
03
3. Applications 3.2 CIMB
CIMB, one of Malaysia’s largest banks, is

3.1 Maxis Berhad
building up its competency and capacity in
Under Maxis’ M2M initiative, apps have been e-commerce. Businesses of any size stand
successfully deployed in the form of a taxi to benefit from CIMB’s state-of-the-art
dispatch service with GPS enhancements. mobility for Internet banking solution that
MyTeksi, an app developed by a local social provides affordability and security in managing
startup, allows users to make taxi bookings electronic payments using smartphones and
wirelessly in real-time. Users download the tablets. Transactions can be safely conducted
app and register on the MyTeksi website. using plug-and-pay mobile apps via a solution
Upon turning on the app, the user’s location that can be plugged into a plug-and-pay card
is pinpointed and the user is immediately reader that readily accepts chip or signature-
connected to drivers listed in the system based credit and debit cards. This paves the
who are equipped with GPS-enabled way for more IoT-related services to come into
smartphones19. Herein, IoT connects users to the foray.
most needed services.
Endnotes
1 Digital Lifestyle Malaysia initiative. Accelerating 5 Ibid.
adoption of a connected lifestyle and the Internet of 6 Inputs by Multi-Stakeholder Partnership
Things. Malaysian Communications and Multimedia
7 Ibid.
Commission. Available at: http://www.mcmc.gov.
my/skmmgovmy/media/General/pdf/130717_DLM_ 8 Ibid.
WorkshopsOverview.pdf 9 Malaysian Global Innovation & Creativity Centre (MaGIC).
2 Overview of MDEC. Available at: http://www.mdec.my/ Available at: http://www.mymagic.com.my/
about-us/overview 10 StarBiz. (2014). Blueprint for the electronics industry
3 Chan, V. (2014). Intel Malaysia and MDeC shares in the pipeline. Malaysian Investment Development
strategic vision for the Internet of Things in Malaysia. Authority. Available at: http://www.mida.gov.my/
Vernonchan.com. Available at: http: www.omgtech.net/ home/2168/news/blueprint-for-the-electronics-industry-
http://vernonchan.com/2014/06/intel-malaysia-and- in-the-pipeline-/
mdec-share-vision-on-internet-of-things-in-malaysia/ 11 Ibid.
4 Kumar, A. (2014). Most Malaysian organisations will use 12 CyberSecurity Malaysia. Available at: http://cybersecurity.
cloud by 2017: MDeC, IDC CIO Survival Guide. Computer my/
World Malaysia. Available at: http://www.computerworld.
13 VADS. Building a Malaysian Cloud. Out Cloud Journey.
com.my/resource/cloud-computing/most-malaysian-
Available at: http://www.mscmalaysia.my/sites/all/
organisations-will-use-cloud-by-2017-mdec-idc-cio-
themes/mscmalaysia/images/cloud-page/cloud-pdf/
survival-guide/#sthash.XQW9vhcV.dpuf
Track%202_3_VADS_Fermin%20Fautsch.pdf
90 appendix
03
14 Telekom Malaysia Berhad and Microsoft Malaysia. at: https://www.jaring.my/business/index.

(2011). Telekom Malaysia strengthens cloud offering cfm?tag=onecloud&sub=default
with Microsoft Partnership. Available at: http://www. 18 Metering International. (2014). Smart grid: Malaysia
microsoft.com/en-my/press/archive2011/linkpage3001. prepares for pilot in June 2014. Metering.com. Available
aspx at: http://www.metering.com/smart-grid-malaysia-
15 Beach, J. (2012). Telekom Malaysia R&D: The Internet of prepares-for-pilot-in-june-2014/
Things is fast becoming a reality. Telecom.com. Available 19 Yap, J., Lim, A and. Yusof, N. H. (2014). Accenture
at: http://www.telecoms.com/41618/telekom-malaysia- Technology Vision 2014: From Digitally Disrupted to
rd-the-internet-of-things-is-fast-becoming-a-reality/ Digital Disrupter: A Malaysia Perspective. Accenture
16 Singh, K. (2014). IoT potential excites Telekom Technology Malaysia. Available at: http://www.accenture.
Malaysia. Digital News Asia. Available at: http://www. com/us-en/landing-pages/Documents/Accenture-
digitalnewsasia.com/node/15581#sthash.P0JGEGtj.dpuf Malaysia/pdf/14-2649_TecVisRep_8.pdf
17 Overview: IT industrialisation is inevitable!.
Jaring Communication Sdn Bhd. Available
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Internet of Things (IoT)

First Publication: 2014

All rights reserved. No part of this publication

Ahmad Helmi Abdul Halim

Yoong Siew Wai

Dr. Mohammad Shahir Abdul Majed Shik

Francis Goon Wooi Kin

Mohd Faizal Amin

Nur Farahin Musa

Zainal Mohamad Nor

Our everyday lives are filled with the benefits of the

The ability to create,

I strongly believe the

Datuk Dr Ewon Ebin

Dato’ Sri Dr Noorul

Prof Tan Sri Zakri

Datuk Abdul Wahab

• Mathew Simon • Mohammad Afini Mat Rani

• Rajvinder Singh • Assoc. Prof Dr Norliza Mohd Noor

• Dr Khoh Soo Beng

KEY ContributOrs (CONt’D)

• Ahmad Helmi Abdul Halim

• Claire Margaret Featherstone

• Tengku Zaib Raja Ahmad

• Dr Wan Abd Rahman Jauhari Wan

• Dr Dzaharudin Mansor • Zaky Bin Moh

• Robert C.V. Tai

14-15 May 2014

Internet of Things Technical Working Group

9 & 23 July 2014

Task Force Engagement Session

Environment Monitoring Water Management

Air Pollution Control

Hospital Patient Management

Health Monitoring Trackers

Agriculture and Aquaculture Management Automotive Emission Control

1.1 Introduction 1.1.2 Components

1.1.1 Definition Cloud Data Data

The term “Internet of Things” was first coined Storage Connectivity

Figure 1.2: Global population of the future Source: http://www.theguardian.com

1.2.2 Individual empowerment Implications: Living standards improve

The increase in wealth and knowledge leads

Implications: Green Revolution through Implications: The distribution and sharing

1.2.4 Diffusion of power 1.3 Market value shift driven by

growing population. Therefore, minimising adaptive learning orientated in all stages of

Agriculture Resource dependency & serves as Knowledge-based & sustainable

Education Structures & curriculum Open & personalised lifelong learning

Government Standardisation Open & smart government services

Smart City Reactive management Integrated & seamless service delivery

Environment Reactive management Preservation & restoration

Table 1.1: Market value shift

Source Market Signal

Frost & Sullivan Connected devices amounting to 40 billion connected “things”11

IDC 28.11 billion of IoT units installed12

Cisco13 & Ericsson14 50 billion devices

GSMA 880 million unique subscribers16

UTMS Forum Global mobile subscription reach 9.7 billion17

Table 1.2: Markets signals for IoT

Enterprise Perspective End User Perspective

Table 1.3: IoT opportunities

Introductory Development Growth Maturity

Canada: Europe: Europe & Japan: Russia:

Strategic Alliance Players Objective