12. Level of Activeness between Regional Programmes Summary of Level of Activeness for National RFID Programmes (World), 2009 Note: Tier 1 refers to countries considered more active in national level RFID rollouts compared to those countries under Tier 2 Source: Frost & Sullivan,2009
13.
14. The region’s standing as the global hub for manufacturing related activities where RFID has tremendous potential. Europe Activeness of National RFID Programmes Asia Pacific North America Latin America Middle East Africa Time Maturity Development Growth Decline Source: Frost & Sullivan,2009
32. Value Added Influenced by RFID Through Anticipated Level of Adoption Total Value Added Influenced by RFID Through Level of Adoption (Malaysia), 2011-2015 Source: Frost & Sullivan, 2009
33. Value Added Influenced by RFID Through Anticipated Level of Adoption Comparison of Total Gross Value Added with and without RFID (Malaysia), 2011 to 2015 2.25% difference in 2015 = USD 9,544 million (RM33,404 million) 0.93% difference for total value added with and without RFID from 2011 to 2015 = USD 15,965 million (RM 55,878 million) Gross Value Added (USD million) Source: Frost & Sullivan, 2009
36. Value Added Influenced by RFID Through Anticipated Level of Investment Value Added Influenced by RFID Through Anticipated Level of Investment in Core Sectors (Malaysia), 2011 to 2015 Total portion of value added influenced by RFID from 2011 to 2015 is USD 1,105 million (RM 3,867.5 million) Source: EPU, SD and Frost & Sullivan, 2009
37.
38. This difference in values observed is due to the number of enterprises found in each sector resulting in a difference to percentage of adopters. Agriculture, livestock, forestry & fishing: 0.23% difference in 2015 Government services: 0.40% difference in 2015 Transport, storage & communication: 0.22% difference in 2015 Source: Frost & Sullivan, 2009
39.
40. This difference in values observed is due to the number of enterprises found in each sector resulting in a difference to percentage of adopters. Manufacturing: 0.12% difference in 2015 Wholesale & retail, trade, accommodation & restaurants: 0.01% difference in 2015 Source: Frost & Sullivan, 2009
41. Total Value Added Influenced by RFID (Level of Adoption + RM 100 million Investment) Portion of Value Added influenced by RFID to Nominal GDP (Malaysia), 2011-2015 Total during 10 MP period = RM 59, 744 million Total Contribution of RFID Value Added to Total Nominal GDP (Malaysia), 2011-2015 Source: Frost & Sullivan, 2009
43. Deriving the Total Returns Factor RFID Investment Return Analysis by Sector (Malaysia), 2011 to 2015 Total returns factor from 2011 to 2015 by sector with the use of RFID Source: Frost & Sullivan, 2009
44.
45. ROI for Manufacturing RFID Investment Manufacturing (Malaysia), 2011 to 2015 Return on Investment: Approximately 5 months Source: Frost & Sullivan, 2009
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47. ROI for Transport, Storage and Communication RFID Investment Return Analysis for Transport, Storage and Communication (Malaysia), 2011 to 2015 Return on Investment: Approximately 9 months Source: Frost & Sullivan, 2009
48. ROI for Wholesale and Retail Trade, Accommodation and Restaurants RFID Investment Return Analysis for Wholesale and Trade, Accommodation and Restaurants (Malaysia), 2011 to 2015 Return on Investment: Approximately 27 months or 2.3 years Source: Frost & Sullivan, 2009
49. ROI for All Sectors (5 Core Sectors Average) RFID Investment Return Analysis for All Sectors Average (Malaysia), 2011 to 2015 Return on Investment: Approximately 7 months Source: Frost & Sullivan, 2009
51. TFP Model without RFID TFP Model without RFID (Malaysia), 1999 to 2015 Source: WB, EPU, DS and Frost & Sullivan, 2009
52. TFP Model with RFID TFP Model with RFID (Malaysia), 1999 to 2015 Incorporates usage of RFID for 10 MP period (2011 to 2015) Source: WB, EPU, DS and Frost & Sullivan, 2009
53.
54.
55. An increase of 0.55% is observed to Malaysia’s TFP and real GDP growth as per illustrated in this study for the corresponding periods of 2011 to 2015 with and without leveraging on RFID. GDP and TFP Growth with RFID (Malaysia), 2000 - 2015 0.55% difference to TFP with and without RFID translates to 19.71% increase Growth (%) Source: UNSD,WB, EPU, DS and Frost & Sullivan, 2009
56. Labor Productivity Level with and without RFID Labor Productivity Level without RFID (Malaysia), 2011 - 2015 Labor Productivity Level with RFID (Malaysia), 2011 - 2015 . USD 0.247 (RM 0.865) difference or equivalent to an increase of 2.36% to the nominal GDP per hour worked observed for 2015 Source: Frost & Sullivan, 2009
57. RFID Contributes to Labor Productivity Level GDP and TFP Growth with RFID (Malaysia), 2000 - 2015 USD 0.247 (RM 0.865) to the nominal GDP per hour Worked = USD 1.967 (RM 6.916) per 8 hour work day = USD 17,070 million (RM 59,745 million) to the nominal GDP of Malaysia Source: WB, EPU, DS and Frost & Sullivan, 2009
Malaysia’s current broadband penetration as of end of 2008 is 21.4%.Its till lags behind in broadband penetration compared to other more developed nations in Asia Pacific e.g. South Korea (92.8%), Hong Kong (85%), Singapore (78.5), Taiwan (66%), Australia (63.7%), Japan (62.7%) and New Zealand (55.7%).
In conclusion, RFID has the potential to contribute a total value added of USD 17,070 million (RM 59,744 million) to the Malaysian nominal GDP over the 5 year period from 2011 to 2015. This is based on the anticipated value added derived from level of adoption and invested sum of USD 28.57 million (RM 100 million) into the 5 core thrust sectors. In total, this translates to approximately 1.00% of the nominal GDP contribution from value added derived from RFID initiatives during this stated period.
In conclusion, RFID also showcases potential to bridge the gap of earning capacity per capita for every hour worked between Malaysia and other more affluent nations. Although the labor productivity analysis does show an increase of USD 0.247 (RM 0.865) to the nominal GDP per hour worked and this increase may seem small, it should be noted that this translates to approximately USD 1.976 (RM 6.916) per 8 hour working day average in 2015. When further analyzing this data, this increase of USD 0.247 to the nominal GDP per hour worked is equivalent to an increase of USD 17,070 million (RM 59,745 million) to the nominal GDP based on an estimated working population of 20,384,000 in 2015. This significant increase will contribute towards the Malaysian Government’s aim of moving the country towards a higher economy nation.
A strategic roadmap for RFID usage for the short, medium and long term need to be in place to achieve overall vision and aims. Relevant government ministries and agencies driving adoption need to be well coordinated to avoid overlap of activities.Stakeholders need to work closely together to ensure all plans materialized and no areas/sectors are overlooked. Invite foreign companies specializing in RFID related technologies to initiate R&D activities.More emphasis on R&D activities to be put in universities to develop innovations and future
Stonger government intervention to increase traction among end user segment.Government to work more closely with other stakeholders to promote and educate people on the possibilities with RFID through funding or mandates to increase adoption rate. Benefits of RFID deployment will not be achieved without understanding and fine-tuning various processes within the enterprise to accommodate this technology.A large portion of adopters will be related to government related sectors/applications; they need to ensure all business processes have been customized when planning an RFID rollout.
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