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A Case Study Review: Future of Internet of Things (IoT) in Malaysia

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DOI: 10.24924/ijise/2017.11/v5.iss2/126.138

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International Journal of Information System and Engineering
Vol. 5 (No.2), November, 2017
ISSN: 2289-7615
DOI: 10.24924/ijise/2017.04/v5.iss2/126.138 www.ftms.edu.my/journals/index.php/journals/ijise
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Review Paper

A Case Study Review: Future of Internet of Things (IoT) in Malaysia

Sivakumar D.
Lecturer cum Education Consultant
FTMS College
[email protected]

Muhammad Fariz Bin Jusman

FTMS College
Cyberjaya, Selangor
[email protected]

Aina Nornidya Binti Mohd Mastan

FTMS College
Cyberjaya, Selangor
[email protected]

Abstract
In the world of rapid digital interaction, the main idea of IoT is to integrate or connect
items/things to an internet for accomplishing intelligent recognition and network management.
IoT can provide communication, connection, and inter-networking between various devices or
physical objects as a source of information to a human being. Nowadays, due to huge advancement
in wireless sensor network and other computation technologies, Malaysia need to improve the
technology in IoT that can be use in various fields. According to the Ministry of Science, Technology
and Innovation of Malaysia (MOSTI), IoT will drastically give an impact to the economics of
Malaysia for the upcoming years. Various of planning had been made by MOSTI to achieve the
goals to create a conducive IoT industry ecosystem in Malaysia. In this paper, we will be discus on
area or fields that IoT can be implemented in Malaysia industry.

Key Terms: Internet of things (IoT), Malaysia, IoT in Education, IoT in Insurance, IoT in
Agriculture, IoT in Healthcare.

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1. Introduction

Over the recent years, manufacturing company especially technology companies have
developed more devices with capabilities to be connected to the internet and it is expanding
drastically for the upcoming years. Basic concept of IoT is to equip all daily life objects with
identifiers and wireless connectivity, so that these objects can be communicate with each other
and be managed by a computer [Lopez Research LLC., 2013]. Devices such as watches,
televisions, cameras and etc. is an example of devices that has been connected to the internet for
widen their functionality. IoT field has expanding their scope from small electronic devices to an
industry that can benefit a lot of people. IoT devices are used across multiple sectors and by
various groups and individuals to perform a decision making [McKinsey Global Institute, 2015].
Data is collected by the IoT devices and this data can turn into useful information.

IoT can be divided into 3 primary users which is consumer, industry and public-sector.
Consumers can use IoT devices to collect personal data information such as monitoring health
and automating household functions. In terms of industry, IoT can benefit them in optimizing
process and generate cost savings. Public sectors and communities can use IoT devices to
address concerns such as changes in the environment. In the future, IoT will become an
important part of our daily life and gives impact to the world economy. Smart Cities, Smart
Homes, Smart Healthcare and many more have been implemented to a few countries such as
Japan, Korea, Canada, Russia and others which show the rapid growth of IoT around the globe.
IoT need to be implemented in Malaysia as part of new technology that can give impact to the
Malaysian economics.

Nowadays, Information and Communication Technology (ICT) sector in Malaysia shows

slower growth and has slowed down the revenue growth of core sectors in Malaysia [Gerdeman,
D.,2016]. More connected devices are needed to enhance the ICT field in Malaysia to produce
more output to the country. Ministry of Science, Technology and Innovation (MOSTI) as a leader
in Information Technology of Malaysia has introduced the National IoT Strategic roadmap to
implement the IoT in 2015. MOSTI with the mission to create a national ecosystem to enable the
proliferation of use & industrialization of IoT as a new source of economics growth has come
out with three goals in IoT [Gerdeman, D.,2016]. One of them is to make Malaysia as a hub of IoT
in the South-East Asia. IoT will gives an economic impact to the economy by 2020 with gross
national income (GNI) RM7.8 billion and provide a new employment up to 14 000 job creation
in the IoT field [Gerdeman, D.,2016]. Implementation of IoT in Malaysia will give a lot of benefit
to the consumer, industry and public sector.

The Internet of Things is not a single standalone technology, it’s a concept in which most
new things are connected and enabled such as street lights being networked and things like
embedded sensors, image recognition functionality, augmented reality, near field
communication are integrated into situational decision support, asset management and new
services [Atzori L, 2012]. In this paper we will review on areas that can be implemented the IoT
concept in Malaysia.

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2. Area of study

In this paper we will discuss about suggestion area on implementation of IoT in

Malaysia. We just focus on 4 areas which is insurance premium, education, agriculture and
healthcare.

2.1 IoT in Motor Insurance Premium

Due to the rapid economic and technological growth, there is an increase in the density
of motorized vehicles. The future of the automotive industry is to turn the vehicle into a
valuable partner using the IoT, where every device is connected to the internet. The automotive
industry is heading to a self-driving autonomous car which can give impact to the use of vehicles
which can reduce the accident rate. Nowadays, connected car in conjunction with the IoT is an
emerging topic to discuss. Connected car may transform to a mobile data rooms, which can lead
to a virtual product features and services [KPMG, 2017]. Data can be collected and transmitted
via wireless connection to the cloud computing for the further use of information. Below are
some of the functions of connected car: [Dakroub, H,2016]

* Stolen Vehicle Tracking (SVT)

* Automatic roadside assistance in case of crashes
* Information calls to Telematics Service Provider (TSP)
* Vehicle updates
* Remote service
* Video streaming

Figure 1: Function of connected car.

Insurance industry is a major part of changing with the use of IoT to transform it in a
new and exciting ways. With the integration of various sensors to existing vehicle technology,
driver assistance systems can be developed and implemented with the purpose of increasing
road safety and driver awareness. IoT can change the conventional insurance industry to an
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insurance technology that can benefit companies and consumer. The use of sensors and
actuators in vehicles are useful for a customer to have real-time information about their vehicle
to avoid occurrence of untoward events [Ooi, T.C., 2017]. Customer also can make decision on
buying a car insurance coverage according to the data collected by their car. Usage-Based-
Insurance (UBI) has been implemented in a several countries around the world. Internet is used
to send the information of real-time driver data to the cloud computing platform and insurance
company can use the data to make an analysis to the driver behavior so that they can
recommend a good coverage insurance plan for their customer.

How it works?

The most important part in a connected car is connectivity. The car can be connected in
a several ways depending on the manufacturer []. For example, Car-to-Network connectivity is
used to connect the car to the cellular network (2G, 3G, and 4G) as a medium where SMS, Data
and Voice calls are transmitted. Car-to -TSP connectivity which utilized communication of the
network connected to the Telematics Service provider (TSP) that have ability to share data to
the car. Besides that, Car-to-Cloud connectivity is used to store data and can be access by the car
via the network.
Car-to-Car connectivity is used as part of the communication between cars wirelessly over the
short-range communication. Car-to-Infrastructure connectivity is used to connect car with the
environment and engaged to exchange data such as traffics light, stop or speed limit signs
[Dakroub, H,2016].

In terms of hardware, it can be divided into 3 vehicle modules which are V2X, TCU and
Infotainment hardware [Dakroub, H,2016]. Vehicle-to-Everything (V2X) are using Dedicated
Short-Range Communication (DSRC) technology for the connection of vehicle to anything such
as vehicle to infrastructure. Sensors and actuators like alarm and crash avoidance sensor is
connected to the car to improve the safety of the vehicle. The Telematics Control Module (TCU)
or Embedded Modem is used to provides an internet connection to the car. Lastly Infotainment
system provides User interface in terms of presentation and visualization.

For the wireless connectivity, there are 5 main important wireless connections that can
be use in the connected car which is DSRC, Wi-Fi, Cellular Network, Bluetooth and Near Field
Communication (NFC) [Dakroub, H,2016]. Below figure shows how the system architecture are.

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 Figure 2: System architecture of connected car. [2]

Data is collected by the sensors using the DSRC technology which manage by the
embedded system like Controller Area Network (CAN) to store data. All data like driving
behavior, speed limitation, braking system and other traffic information is controlled by the
CAN network. Data collected will then transmit to the cloud computing using a wireless system
such as mobile network or Wi-Fi connection. DSRC can give alert to the driver about the traffic,
crash avoidance, maintenance of car and others using the infotainment to allow driver to take
an action. Data in the cloud computing platform will be used by the insurance vehicle company
to analyze the driving behavior to make decision on insurance premium of the vehicle.

Figure 3: Customized motor insurance.

From the above figure we can see that the real-time driver data such as utilization,
mileage and speed are transmitted to the cloud computing platform so that the insurance
partner can make a driver analysis such as driving style, incidences and make a report on the
data collected. In conjunction with the liberalization of motor insurance in Malaysia in 2017, the
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IoT can helps insurance company to decide on insurance rate based on NCD points using data
that been collected by the IoT technology. Hence it will give an impact to motor insurance
company in new ways using the IoT technology.

National car like Proton and Perodua need to implement the IoT technology in their
automobile industry to enhance the technology of IoT in Malaysia. Third party system of cloud
computing like google platform or any Telematics service provider like Telekom Malaysia need
to enhance their technology as a partner to the insurance company to store the driver-vehicle
data. Hence, it will improve the motor insurance sector as a part of integration of technology in
Malaysia. IoT not only can be implemented in the automobile insurance but can be widen into
other insurance field like healthcare and properties using an IoT technology.

Challenges in IoT in Insurance Industry

i. Integrating IoT with Vehicles

There are a lot of connected devices such as sensor and RAM memory must be installed in the
car system architecture. Thus, it makes it one of the challenges in implementing the IoT in the
automobile insurance industry. A new system in terms of sensor technology must be design and
implemented to overcome this issue. The issue on updating and maintaining the software also is
the one of the challenges. If the car system is not updated to the new version, it will cause a lot
of trouble and can affect the safety of the users of the vehicle. This issue must be overcome first
before implement the IoT in the insurance industry.

ii. Data Ownership

Data ownership is a big challenge for many insurers. The question is, “Does the data belong to
the insurance company or the customer?”[Norman, B, 2017] Customers probably would argue
about their rights over those data and need to access to historical data on their claims history to
change insurers at renewal.

iii. Data Security and Fraud

IoT has becomes widespread and it opens the opportunity for cyber-attack and fraud. The
extreme quantity of data that will flow between the connected vehicles, connected home and
insurance company is unprotected to interception. The new IoT products are also likely to lead
to new application and claim frauds. Insurers will need to invest more for data security and
fraud protection.

2.2 IoT in Education

Schools and universities are one of the important parts in our life. In the rapid growth of
technology, education has implemented technology as part of the learning process to make it
fun and interactive. The use of ICT has changed the education to the next level from the
conventional hard copy books to the integrated system of education technology. With the IoT,
education industry can enhance the learning outcomes, administrative process and getting a
real-time data on student performance [Kiryakiva, G.,2017].

The idea of the inter-networking between devices is to connect people with more
understanding about the surrounding and allows more exchange of information between device
and people. Smart devices are used by people nowadays more towards daily life routine and not
in the education industry. Implementation of IoT in education is one of the future planning
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around the globe. Same as Smart houses, Smart University and Smart School must be introduced
with the use of IoT to enhance the education system to become more efficient in the learning
and management process. According to Gabriela [Lopez Research LLC., 2013], IoT in education
creates a new environment that supports the acquisition of knowledge in a new, and efficient
manner consistent with the learners’ needs and expectation.

Education system in Malaysia must enhance the quality of learning environment and
management process with the use of IoT. Digital campus or Smart School can attract more
students to learn with the integration of the technology in education. Management process
much easier with the use of IoT which makes administrative cost cheaper and more efficiently.
Government needs to provide more funds to the universities and schools to become a Smart
Digital Campus/School. This will give a huge impact on education industry to Malaysia.

Idea of Smart Digital Campus

Smart Digital Campus nowadays increase in demand for higher education institution to
digitalize the learning and administrative process in the digital environment [Kiryakiva,
G.,2017]. The design of the physical infrastructure with integration of technology will impact the
teaching, learning and research experience to encourage student on lifelong learning [Porter,
A.,2013]. Smart Digital Campus can reduce the operational costs, improve security and offers a
technology tools for the student and staff. According to Aldowah (2017), Smart Digital Campus
comprises in two main component which is connectivity, which use the IT service delivery
platform to make the connection all over the digital campus, and the IoT devices to support the
service platform to enhance student learning and management.

According to Cisco, there are five main categories in the digital campus which is Building
Control and Management, Security and Access Control, Video and Information Systems, Location
and Attendance Systems, and Energy Monitoring and Control. Figure below is the illustration of
the system of Smart Digital Campus;

Figure 4: System Architecture of Smart Digital Campus.

Implementation of IoT will connects all the sensors to these five main categories of
system in a digital campus. Sensors will alert the system and transfer data to the IT Service
Delivery Platform about the data and information collected. For example, sensor for light energy

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monitoring in the building will shut down the light power automatically if there is no activity in
the building and the data can be transfer to the service platform. The most important part in the
digital campus is the wireless connection and must be design to meet high demands of modern
university.

IoT also enhance the teaching and learning in the campus, for example, the IoT in the
training of the same sight, making the teaching space, training venues, sports venues, learning
dormitories, restaurants and students across the campus of IoT, making the campus to train
students anytime and anywhere, can become a physical, mental, and skills place to acquire a full
range of learning and training. This will lead colleges to become ubiquitous learning and
training [Tianbo, Z, 2012].

Benefit of IoT in Education Sector

Students are much more engaged in the learning process. Various personal devices can
be enhanced using the IoT technology into the smart device in education which can be access
easily by the student to attract them in affective learning process and experience. Connected
devices will make student become active rather than passive when they can communicate with
each other using the educational smart devices. They can share knowledge and information in a
real-time which can stimulate the activity of learning as well as research process.

IoT can be used to automating many administrative activities. Connected devices can
reduce the time and increase efficiency in a many of administrative tasks. With the connected
devices, some daily routine activities such as attendance of the student can be track by using the
connected devices.
This can save a lot of time and teachers don’t have to waste their time by doing this. The
collected data must be kept to analyze the student report and making a future plan for the
school or university.

Challenge in IoT in Education

IoT brings tremendous challenges and opportunities to higher education. This unprecedented
growth of computing, evolving IoT capabilities, technologies is not only improving the value of
teaching and conducting research. It’s also introducing a new digital culture. Nevertheless, it’s
also face challenge to implement in education sector.

i. Capability to integrate IoT in classroom

IoT offers lots of advantages to teachers and students, however it also leaves some concerns
about its implementation. To successfully integrate the devices in the classroom, an education
provider need to have capabilities to provide necessary equipment such as Wi-Fi, robust
network bandwith, teachers training, devices for students and more.[IoT in the Classroom,
2017] Education organization need to make sure both of IT equipment and teaching strategies
suitable and support the use of IoT in classroom.

ii. Security and privacy

Since these devices measuring and collecting students’ data, they’re putting the security and
privacy of students at risk by maximizing the storage of sensitive data in Internet-based
network of connected devices prone to cyber-attacks. Education providers are concerned about

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repercussion of security breach that could risk a student ID linked to an individual’s health
record and family financial information.[Dakroub, H,2016]

iii. Difficult to manage

IoT program could be expensive and hard to manage. Some devices and applications are not
compatible and impede the organization’s ability to make an IT environment that is accessible
to all users.

2.3 IoT in Healthcare

Interest of body wearable sensory has emerged as powerful equipment for application of
healthcare. Researchers have proposed new clinical application of technologies for systems of
remote health monitoring. This includes functionalities for medical access to physiological
information of patient and record patient status in a long term.

A guide to healthcare: IoT possibilities and obstacle.

IoT in healthcare has the potential not only keeping patient safe and healthy. It’s could also
improve how physicians deliver care. Through IoT healthcare, it’ll boost patient satisfaction by
allowing patients spending more time with their doctors.

Healthcare: IoT obstacle.

Amount of connected devices and data they collect is a challenge for hospital IT to manage. The
questionable issue is how to keep all of those data secure when it is being exchange with one
another.

Application: IoT in healthcare.

IoT healthcare keeps patients safe and healthy. If we take an example outside of Malaysia,
Boston Medical Center (BMC), they used IoT approach for patient care and building operations.
While many IoT deployment focus on routine operations such as light and heat control, BMC
goes one step ahead where everything from newborn babies to leftover food are reaping
benefits of IoT in healthcare.[Frost., S., 2015]

The hospital uses sensors for security. These babies will be given wristband, allowing wireless
network locating them anytime. If a newborn is taken too close to an exit door without being
signed out, elevators will be stop and exit doors will lock. Meanwhile, in neonatal intensive care
unit, nurses will receive critical alerts on hospital cellphone about their patients’ condition. This
includes heart rate and changes in oxygen sensors have detected, allowing them to get to the
patients’ quickly. IoT in healthcare in BMC is not limited to medical application. They also use
“bio-digester” that compost food scraps from kitchen. This machine is monitored by IoT
technology in order to make sure it’s functioning properly, which are to measure how much
waste is running through it and determine whether water that being used is enough. The
neighborhood near BMC; South End neighborhood, also installed wireless sensors in
refrigerators, freezers, and laboratories to ensure medications, blood sample and other
materials are kept at proper temperatures.[Frost., S., 2015]

Advantages & Disadvantages: IoT healthcare.

IoT has numerous in the medical industry as well. It’s appears everywhere from patient devices
all the way up to supply chain management for pharmaceutical and equipment. IoT has the
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potential changing the medical industry, although time has not yet determined if these changes
is for good or not.

Pro: Cloud Data and Predictive Analysis.

Medical devices collect massive amount of information daily. Most of this information is not
sorted out yet, leaving a big amount of potential research data. Using IoT devices, this
information can be collected sorted and turned it into useful prediction. [Kayla, M.,2017]

Cons: Concerns about Patient Privacy

Nowadays, many new implantable patient devices have been invented, as an example,
pacemaker. It’s being designed using IoT technology because it’s easier to monitor. The newer
models can be monitored by simply sending Wi-Fi signal to the device. Doctors are able to keep
track their patients’ implanted device as well as receiving alerts if device report any problem.

Nevertheless, this rise concerns for patient privacy. A case in Ohio, where the police were able
to obtain search warrant for a suspect’s pacemaker data to be used as evidence in an insurance
fraud case.[8] The search did prove the suspect committed crime, however, this also proved that
the use of medical data as evidence by law enforcement officer can create dangerous precedent.

Pro: Patient Assistance and Improved Case

There are lots of IoT devices that already being used in hospital around the country for a better
care for patient and this include:

▪ Blood glucose monitoring for diabetes patients.

▪ Smart pills, that can be monitor health problems.

▪ RFID(radio-frequency identification)-equipped pill bottles, which able to track when a

patient should take their medication and sends reminders if a dose is missed. [Kayla,
M.,2017]

There are lots more devices and all of them rely on IoT technology in order providing the best
care for patients.

Cons: Security Breaches

In October 2016, a massive DdoS (Directed Denial of Service) attack proved that unsecured IoT
devices could enable hackers to attack servers from hundreds or thousands IP addresses.
They’ll infect these unsecured devices with malware and hackers will be able to utilize the
processing power of those smart devices.

Although many of this kind of problem can be prevented, for instance, changing default
password of IoT device, the possibility of these devices being hack still exists.

IoT Healthcare in Malaysia

The IoT market potentials in Malaysia is predicted to register $2.2 billion by year 2020. Prof. Dr.
Shahrin bin Sahib, the Vice Chancellor of Universiti Teknikal said that, this development is
expected to grow exponentially beyond 2020 to reach $10.5 billion in 2025. He also states that
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Malaysia has encouraging environment and good starting point to promote IoT within its
market.

A sector where IoT has easily noticed effect is healthcare. Vinod Khosla, the Billionaire
investor stated that, “In the next 10 years, data science and software will do more for medicine
than all of biological sciences together.” The Forbes magazine estimated the market value of IoT
in healthcare at $117 billion globally reaching year 2020.[Sue, Y.H.,2017]

3. Conclusion

In this world of rapid rising of technology, IoT gives insights of how people can integrate
technology in their lives. As IoT is valuable information that could be used in various ways, it’s
globally used, including Malaysia. Although it’s beneficial, it also has flaws and obstacles in
implementing it in the industries. There is lots of room for improvement, for an example in
education sector on how IoT could fit in and be implemented in Malaysian education system as
we reaching year 2020.

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