Tiny chip with great potential
BY JOSEPH LOH
IMAGINE an end to long queues at your local supermarket check out lanes. All that is required is one sweep of a specialised device and all your purchases are entered into the cash register – without having to remove them from the shopping cart.
This is one of the ways that the Malaysia Microchip (or MM Chip) can – and will – change the way we interact with the world around us. It is the smallest RFID (radio frequency identification) chip with an on-board antenna in the world.
At an event last week where three chips (MM1, MM2 and MM3) were launched, Prime Minister Abdullah Ahmad Badawi said the research and development potential of RFID technology was vast and exciting.
As Jamaluddin Abu Hassan, chief operating officer of Senstech Sdn Bhd puts it, "Everybody is talking about its applications and what RFID can do for industry, and for mankind. This is a new emerging technology that can conquer the world."
RFID technology is not new and Malaysians are no strangers to it, commonly using it in the Touch 'n Go cards, for example. The Malaysia Microchip, however, represents a step forward in the application of the technology.
Jamaluddin explains that the Malaysia Microchip has several distinct advantages over existing RFID chips in the marketplace due to its diminutive size of only 0.7 x 0.7mm, and its ability to be used across a broad range of international RFID standards (which specify different radio frequencies or bands). Additionally, because it was developed using proprietary technology, it gives increased security to its users as well.
"Our chips can work over multiple bands. Most chips can only do one band, and if users want to comply with another band, a different chip has to be designed and manufactured for that purpose. Additionally, our chips are so small that it can be embedded in paper.
"Furthermore, the Malaysia Microchip is the only government-initiated RFID development in the world. No other country in the world is doing that and there is great national pride in it," he says.
Starting small
The seed of the Malaysia Microchip project was planted in 2003. Dr Azmi Hassan, director, office of the science advisor at the ministry of Science, Technology and Innovation Ministry, shares: "It started when Tun Mahathir visited Japan and met with a company called the First Hill Electronic Company (FEC Inc), which claimed to have the smallest RFID chip in the world. It caught his interest and the Malaysian government subsequently engaged the company and bought the IP (Intellectual Property) of the chip. He then set up a special committee in September 2003, which he himself chaired." This resulted in the MM1, which saw light in 2004. But, says Azmi, that chip had a limited memory capacity and they had to upgrade it. These developments took place at the end of Tun Mahathir's administration, and in April 2005, the project was presented to the current Prime Minister, who gave his approval and work continued.
"We then officially engaged FEC Inc to further develop the technology, resulting in the MM2 and MM3 chips," he says.
When asked why the government took such a big interest in RFID technology, Azmi says the use of RFID technology is increasing, as shown from a market value of US$2bil (RM7bil) in 2003 and is expected to reach US$12.3bil (RM43.15bil) by 2010.
"We are developing something that has potential to be marketed around the world and ownership belongs to Malaysia."
As the use of RFID increases globally, he adds, "We will not have to buy tech from outside as we have our own chip, and can even sell it other countries."
But what matters more are the benefits the Malaysia Microchip presents to our own country.
"RFID technology solves many of the problems faced by the government, especially relating to security issues. We can embed the chip in halal certificates, sijil nikah (marriage certificates), car registration cards, confidential documents in government departments, currency notes and so on. With this authentication technology we can avoid forgeries and overcome the counterfeiting problem."
Azmi cites the example of the first implementation of the Malaysia Microchip, in the "B" certificates issued by the division of film control under the Home Affairs Ministry.
Miniaturisation costs big
As with all other emerging technologies, the early development costs are high, hence early adopters will have to pay a premium price for it.
Jamaluddin sees this as a necessary expense.
"When you have good technology, you have to pay more for it. It all depends on economies of scale, but with the benefits you get from RFID, it becomes competitive and is very reasonable.
"Each chip alone costs US$0.06 (20 sen), but we cannot do business based on just 20 sen. We have to look at the cost of a complete solution, not just the chip. What makes the whole system work is how you process the information, how it goes to the database, and how the data is processed, amongst others."
Azmi takes the example of using RFID in airline baggage tags.
"Once it comes in the form of a tag, the price goes up, but look at its benefits. The cost of mishandled baggage goes into the millions. RFID has a 97.6% read rate compared to bar codes, which is less than 93%. There is a huge amount of money airlines can save."
Azmi is aware of the challenges that lie ahead.
"Trying to convince people to use it is a challenge in itself. Cost will be another."
He encourages all Malaysians to use the chip.
"The more people use it, the more we can develop it, and the further we can spread its use throughout the world," he says.
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