National Internet of

Things (IoT) Strategic

Roadmap: A Summary
National Internet of Things (IoT)
Strategic Roadmap: A Summary

an initiative by
National IoT Strategic Roadmap: A Summary

in alignment with

First Publication: 2015

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 National IoT Strategic Roadmap: A Summary

contents
NATIONAL IOT STRATEGIC ROADMAP: A SUMMARY
NATIONAL IOT STRATEGIC ROADMAP: 3. WHAT WE WANT TO ACHIEVE............... 10
AN OVERVIEW.......................................... 2
a. Vision
b. Mission
1. WHY INTERNET OF THINGS (IOT)?......... 4
c. Goals
a. Internet of Things
b. Megatrends 4. IMPLEMENTATION STRATEGIES.......... 11
a. Short-Term Strategies
2. WHERE WE ARE....................................... 6
b. Long-Term Strategies
a. Global Market Potential
b. Malaysia Market Potential 5. WAY FORWARD...................................... 14
c. Readiness of Malaysia for IoT
APPENDIX: PILOT PROJECTS..................... 15
National IoT Strategic Roadmap: A Summary

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National IoT Strategic Roadmap: A Summary

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National IoT Strategic Roadmap: A Summary

1. Why Internet of Things (IoT)?

A. INTERNET OF THINGS The Internet of Things (IoT) is a convergence of

smart devices that generate data through sensors
Connected Connectivity to create new information and knowledge to boost
Things Data & Infrastructure human intelligence, efficacy and productivity to
enhance the quality of life.
Cloud Data Data
Protection Processing
Static Dynamic IoT is defined as “Intelligent interactivity between
human and things to exchange information and
Storage Connectivity
knowledge for new value creation”. It is a complex
yet complete solution encompassing three main
Knowledge Analytics Integration & technology components namely connected
for Action & & Apps Collaborative things with embedded sensors, connectivity and
Feedback Information
infrastructure, and most importantly analytics and
applications (refer to Figure 1).
Domain Apps &
Knowledge Services

Figure 1: Components of IoT

 National IoT Strategic Roadmap: A Summary

B. MEGATRENDS As a result, the implication of these two megatrends

will force global society to implement new
IoT technology is resultant from major megatrends: technology in order to enhance productivity, optimise
(i) Market and (ii) Technology as depicted in Figure 2. resources and increase sharing efficiency while
maintaining individual needs.

Demographic
Big Data
Shift Shift in demand Decision making
• Ageing society structure & action • Insights & knowledge
• Urbanisation & generation
migration
• Rise of women power

Individual
Cloud Computing
Empowerment Personalisation & On-demand
• Growth of global high involvement • Delivery of
middle class information &
• Higher education functionality to anyone,
level anytime & anywhere

Food, Energy &

Water Nexus
Optimisation
Internet of Collaboration
Social Media
• Competitive demand
for scarce natural Things & innovation • Constant
interconnectivity
resources & sharing of
information

Diffusion of
Proliferation of Things
Power Shared information Richness of
• Highly connected & & power information • Granular &
networked society multidimension data
collection

Figure 2: Megatrends resulting in IoT

National IoT Strategic Roadmap: A Summary

2. Where We Are

A. GLOBAL MARKET POTENTIAL implementation across the world where several

countries started to embark on IoT projects
IoT opportunities are enormous with a global that focus on energy, water, transport, building
economic value projection ranging from US$1.9 management, and government service delivery (refer
trillion to US$7.1 trillion by 2020. There is strong to Figure 3).
momentum for the prevalence of IoT solution

Canada: Europe: Europe & Japan: Russia: Korea:

• Started in 2010: i-CANADA • Started in 2011 • Started in 2013 • 2020 target: US$980M • Started in 2003
• Healthcare, TeleWork, • Smart Cities & • ClouT: Joint European- • Vehicles, smart parking, • Smart city & smart
e-commerce, education & Community Japanese ICT project for smart cities’ payment government
government • Cognitive IoT smart cities terminals, devices and • 2014: 5G network
• Public Sector • Smart objects sensors technology (intelligent
• Smart City • Smart transportation networks)

Japan:
• Started in 2010
• Home energy
management: Yokohama
city, Kansai Science City &
Kitakyushu city
• Transport: Toyota City
• Applications: Vending
machines, transportation
USA: management, surveillance
• Started in 2010: & e-wallet services
SmartAmerica
• Areas: Manufacturing, China:
healthcare, energy, • Started in 2005
transportation & disaster • Traffic systems & IoT
response, government, • 2011: Food safety &
aeronautics & social healthcare in remote &
media South Africa: rural areas
• Started in 2010
• IoTEG (IoT Egineering India: Australia:
Group), CSIR Meraka • Started in 2010 Singapore: • Started in 2010
• Applications: Connected • Areas: Water, energy • Started in 2013 • Renewable energy &
devices, energy efficiency, & waste resource • Areas: Wireless technology, electric vehicles
enabling smart efficiencies, environmental smart products & smart • Healthcare, government &
environments governance nation infrastructure

Figure 3 : Global IoT implementations

 National IoT Strategic Roadmap: A Summary

B. MALAYSIA MARKET POTENTIAL • Application and services amounting to RM34

billion in 2025 compared to RM7.5 billion for
The initial IoT economic potential for Malaysia will be 2020
RM9.5 billion GNI creation by 2020 and it is expected
to experience exponential growth beyond 2020 and • Device producers at RM1.0 billion and RM4.3
reach RM42.5 billion (refer to Figure 4). Technology billion for years 2020 and 2025 respectively
opportunities can be created by IoT in Malaysia with
forecast technology opportunities for:

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 4: IoT technology opportunities Source: Gartner (2014)

National IoT Strategic Roadmap: A Summary

Besides delivering financial impact to the nation, • 65.8 percent of Malaysians are Internet users
IoT can serve as a good platform for the research with 59 percent being active users
community to commercialise R&D outputs. As
of 2012, there are 146 potential patents from • Social media penetration in Malaysia is at 45
Malaysia inventors which can be licensed to percent
investors to enhance the competitiveness of their
IoT applications and services. Furthermore, the • Domestic ICT consumption is projected at
growth of IoT in the Malaysian market is projected to RM118.6 billion in 2015 and will register
generate a total of 14,270 high-skilled employment RM117.6 billion by 2020 with a CAGR of 8.32
opportunities by 2020. percent

IoT will be the transformative and pervasive driver of While acknowledging the advantages of IoT
change and improvement by potentially adding new technologies, several challenges must be addressed
dimensions to the industry in the following ways: to unleash the full potential of IoT besides leveraging
on existing strengths for IoT (refer to Table 1)
• Testing facilities for interoperability, standards to continue to open new markets and drive new
compliance and export-related testing applications and opportunities for a wide spectrum
of industries.
• Software development standardisation to
address standard silos and facilitate the creation
of niche applications and services

• System integration services to produce experts

from entrepreneurs through interaction with
various stakeholders in the ecosystem

C. READINESS OF MALAYSIA FOR IOT

Malaysia has an encouraging environment and a

strong starting point to foster and spur IoT within the
domestic market due to the following:

• High mobile penetration at 143.7 percent and

observation of multiple handset ownership
 National IoT Strategic Roadmap: A Summary

Factor Strengths Weaknesses

Technology • Well-established mobile operators and • Technology complexity
five operators licensed to provide 3G • Legacy systems
services
• 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 • Barriers to free market competition exist
and innovation
• E&E industry is leading in terms of
investment, industrial output, value add,
exports and employment
Societal • High phone and Internet penetration • Rural adoption and adaptation fear - technology
rates phobia
• Sophisticated consumers are eager to
use mobile data and value-added services
Political • Various incentives like pioneer status, tax • Dedicated performance management entity
exemptions and allowances to promote exists to monitor and drive performance of
ICT investment innovation initiatives
• Intellectual property protection and • Broken linkages across industry and public RIs
cyberlaws • Multiple public agencies working in silos on
innovation initiatives

Table1: Readiness of Malaysia in exploring IoT opportunities

National IoT Strategic Roadmap: A Summary

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3. What We Want to Achieve

A. VISION • To institute a centralised regulatory and

certification body to address privacy, security,
Malaysia to be the Premier Regional IoT quality and standardisation concerns
Development Hub
• To establish strategic collaborations between
B. MISSION MNCs and local players

To create a national IoT ecosystem to enable the GOAL 2: Strengthen technopreneur capabilities
proliferation of use and industrialisation of IoT as a and foster the generation of globally-competitive
new source of economic growth IoT products and services to further strengthen
Malaysia’s position in the IoT industry
C. GOALS
GOAL 3: Malaysia as the Regional Development
The goals of the National IoT Strategic Roadmap are Hub for IoT; with the establishment of an integrated
to integrate all efforts from various stakeholders in centre for IoT solutions, equipped with supporting
Malaysia to focus on areas of identified significant services and facilities such as interoperability testing
value creation through three strategic goals: and development of IoT products and services,
Malaysia will be positioned as the preferred location
GOAL 1: Create a conducive IoT industry ecosystem for IoT outsourcing services for the Malaysian
to foster the development, diffusion and adoption of industry and the world at large
IoT technologies with the following strategies:

• To formulate an interoperability framework that

harmonises the heterogeneity and complexity of
standards and technologies
 National IoT Strategic Roadmap: A Summary

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4. Implementation Strategies

Members of the Technical Working Group (TWG) the challenges and capitalise on prevailing IoT
suggested critical factors required to address opportunities which are summarised in Table 2.

Goal Strategy Short- Mid- Long-

Term Term Term
Initiative Initiative Initiative
(2015- (2018- (Beyond
2017) 2020) 2020)
1. Create a Enhance the regulatory framework to cater for IoT
� �
conducive technologies
IoT industry
Strengthen institutional support in areas of technology and
ecosystem � �
standards development
Leverage on existing initiatives and infrastructure to
�
facilitate the creation of the IoT industry
2. Strengthen Develop SME capabilities to kickstart the IoT industry � �
technopreneur
capabilities in the Incubate SME competencies through focused “flagship”
� � �
apps and services projects
layer Develop key talents � �
3. Malaysia as Promote Malaysia as the key “showcase” country �
the Regional
Development Hub Promote Malaysia as the integrator of IoT solutions �
for IoT
Position Malaysia as the centre of the IoT outsourcing
services industry �

Note: Refer to the full report on the details of the proposed implementation strategies.

Table 2: Goals and implementation strategies of the National IoT Strategic Roadmap
National IoT Strategic Roadmap: A Summary

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Short-term and long-term strategies have been • This strategy will enhance awareness on
proposed to be carried out to bring Malaysia’s IoT possible applications and implications of IoT
industry maturity level from the introduction stage
to the growth stage while creating a sustainable B. LONG-TERM STRATEGIES
and significant industry ecosystem that will position
Malaysia as the Premier Regional IoT Development Long-Term Strategy 1: Formation of IoT Malaysia
Hub.
• The objective of this strategy is to establish a
A. SHORT-TERM STRATEGIES Community of Practice (CoP) for IoT in Malaysia
which is an entity composed of industry
Short-Term Strategy 1: Transformational steps for practitioners who share a common interest to
the development of IoT as an industry build an industry out of IoT technologies

• Develop SMEs’ capabilities to kickstart the IoT • The partnership will be a self-governed and
industry self-sustained ecosystem and aligned to the
value-based roadmap
• Incubate SMEs’ competencies through focused
“flagship” projects • Key roles:

• Develop key talents who are able to build better • Manage and promote the ecosystem
solutions for the future
• Be a platform to gather the industry’s
Short-Term Strategy 2: Alignment with existing technological requirements
initiatives through pilot projects
• Offer shared services for industry
• Pilot projects will act as catalysts and steer development in Malaysia
collaborations among industry players to
demonstrate IoT contributions to quality of life • Act as a nucleus for IoT talent development
(refer to Appendix) and as a bureau for IoT industry
development
 National IoT Strategic Roadmap: A Summary

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Long-Term Strategy 2: Establishment of the Open Long-Term Strategy 3: Creation of the Open
Innovation Framework Community Data Framework

• The intended Open Innovation Framework is • The strategy deliberates on the method of
not a standardisation initiative, but rather a growing the industry to the next level by opening
framework to harmonise technologies for the up public data with the intention of expanding
development of IoT technologies in Malaysia the applications of IoT

• Key roles: • Key roles:

• Harmonise multiple standards • Establish the definition of Open Community

Data
• Strengthen local technopreneurs’
competitive capability • Set up the Data Aggregator System to
standardise multi-data formats and alleviate
• Enable new technology creation concerns of data security, privacy and
traceability
• Drive heterogeneous and mobile system
architecture • Manage the commercial aspect of data for
new value and revenue stream creation
National IoT Strategic Roadmap: A Summary

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5. Way Forward

It is imperative that the growth of IoT in Malaysia occurs i. Form think tank laboratories to formulate the
within an ecosystem driven by three key strategic implementation master plans for:
thrusts to establish a framework for its endeavours. The
a. National IoT Strategic Roadmap’s short-term
thrusts comprise: IoT Malaysia to create and sustain
and long-term strategies
the ecosystem, Open Community Data Framework for
open data sharing and Open Innovation Framework b. Pilot projects which include detailed timelines,
for a common technology platform. The enablers shall milestones and government mechanisms
harness the intrinsic values of the three strategic
ii. Establish an organisation structure and its members
thrusts towards the institutionalisation and recognition
of Malaysia as the Premier Regional IoT Development iii. Establish a governance mechanism and periodic
Hub (refer to Figure 5). meetings
iv. Define key performance indicators
Looking ahead, the following are the action plans to
drive the National IoT Strategic Roadmap: v. Recommend the budget for strategic initiatives

National IoT Strategic Roadmap

Malaysia as the
Premier Regional IoT Development Hub
To create a national ECOSYSTEM to enable the proliferation of use and industrialisation of MISSION
IoT as a new source of economic growth

RM9.5B (2020) 14,270 jobs 146 local

RM42.5B (2025) (2020) patents to be OUTCOMES
exploited
ECONOMY EMPLOYMENT EDGE

Strengthen Malaysia as
1 Conducive
Ecosystem 2 Malaysian
Technopreneurs
3 the Regional
Development Hub
GOALS

i. Transformation of SMEs i. IoT Malaysia

ii. Alignment with existing initiatives ii. Open Innovation Framework
iii. Open Community Data Framework STRATEGIES

SHORT-TERM GAME-CHANGING
Figure 5: Mission, outcomes and goals with implementation strategies of the National IoT Strategic Roadmap
 National IoT Strategic Roadmap: A Summary

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Appendix: Pilot Projects

Pilot projects act as catalysts for industry players to apply forward-thinking approaches on how IoT
applications are built, used and displayed while increasing the industry’s participation in economic activities by
utilising IoT technologies. The projects flag areas that require further attention from IoT implementation teams
and highlight underpinning issues that should receive more attention and countermeasures.

AGRICULTURE AND AQUACULTURE

OBJECTIVE: To increase farming productivity and

quality output while maintaining affordability and
sustainability in the value chain. Intelligent Decision
Support System

APPLICATION: Aquaculture traceability

Mobile
HOW: Operators can easily measure air and water Application
quality as well as an animal’s well-being and type
without the use of chemicals or altering the natural WiFi
Processing Facility
crop life cycle.

The IoT-enabled application and service will enhance

the track and trace function of the breeder, and
subsequently enhance supply and demand visibility,
optimise production and quality control in order to Sensors in Hatchery and Nursery
build competitive powers. Aquaculture traceability system

National Initiative Alignment Digital Lifestyle Malaysia (DLM): Traceability

Pilot Project Aquaculture Farming: From Pond to Plate
Lead Aquagrow Corporate Sdn Bhd
Collaborator MIMOS Berhad

Ministry 1. Ministry of Agriculture and Agro-Based Industry (MoA)

2. Ministry of International Trade and Industry (MITI)
National IoT Strategic Roadmap: A Summary

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HEALTHCARE
Auto SOS and
OBJECTIVE: To create continuous diagnostics and Panic Device
precision treatment by medical experts utilising
IoT technologies ranging from wearable devices Hospitals/
Phone Calls, Clinics
that track daily activities, vital signs and diet habits SMSes and
Local Alerts
to further merge, dissect and crunch data for with GPS
biomarkers or measurable indicators. Location
Caregivers

Health Info
APPLICATION: Continuous health monitoring
WiFi
HOW: Predictive and actionable models of health
Cloud Doctors
and disease with holistic biological data and social
Computing
information are generated for wellness optimisation
and disease management. Continuous health monitoring system

National Initiative Alignment Digital Lifestyle Malaysia (DLM): Connected Healthcare

Pilot Project Continuous Health Monitoring
Lead CREST
Collaborator Kontron
Ministry Ministry of Health (MoH)
 National IoT Strategic Roadmap: A Summary

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GOVERNMENT

OBJECTIVE: To offer a holistic, services-oriented

approach to revitalise cities for sustainable and
inclusive growth through:

• Economic development and job creation

• Resource efficiency and climate change
mitigation
• Liveable places for life, work and leisure
• Effective city management
• Community support

APPLICATION: Smart Village

HOW: Connectivity through Community Broadband

Centres (CBCs) to become a new business model in
helping local communities to develop and maintain
promotional information, be a channel for local
authorities and local governments to disperse Smart Village deployment and devices
information to targeted groups, be a surveillance
centre point for security or systematic monitoring,
and track visitor or animal movements on real-time
basis.

National Initiative Alignment Digital Lifestyle Malaysia (DLM): Home & Community Living
Pilot Project Smart Village: Lanchang, Pahang
Lead Archpac Corporation Sdn Bhd
Collaborator 1. Universiti Malaysia Pahang (UMP)
2. MIMOS Berhad
3. Pahang State Government
Ministry Ministry of Tourism & Culture
National IoT Strategic Roadmap: A Summary

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ENVIRONMENT

OBJECTIVE: To reduce waste, improve the

environment and prevent environmental accidents
by enabling sensing strategies featuring real-time Mobile
data perception, resource concentration and sharing, Applications Leachate
Treatment Plant
system integration as well as effective supervision
Weighbridge
and decision making.

APPLICATION: Intelligent landfill management Knowledge Sensors

Management

HOW: Using IoT, landfill operators will be

empowered by the positioning of environmental
sensors to monitor environment parameters such as Video Analytics Renewable Energy
water and air quality to prevent the landfill site from Centre
becoming a breeding ground for rodents, flies or
other disease vectors. Intelligent landfill management system

With surveillance cameras, operators can remotely

monitor the site which is properly fenced off to keep
people and animals out besides monitoring the types
and volume of waste being dumped at the site.

National Initiative Alignment Digital Lifestyle Malaysia (DLM): Home & Community Living
Pilot Project Intelligent Landfill Management
Lead KUB-Berjaya Enviro Sdn Bhd
Collaborator To be confirmed
Ministry Ministry of Energy, Green Technology and Water (KeTTHA)
an initiative by