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EPP 2
The 1Malaysia Payments EPP has been transferred to the Financial
Services NKEA for more efficient and effective governance. In its
place is the Track and Trace EPP which sees the application of
Radio Frequency Identification (RFID) technology as a means
to generate economic gains. The first project under this EPP is
the use of RFID in Security and Trade Facilitation. This project
enables the monitoring of containers to facilitate clearance within
domestic ports and selected high volume routes. This initiative
is led by SmarTAG Solutions Sdn Bhd in collaboration with the
Jabatan Kastam Di Raja Malaysia and Malaysian Communications
and Multimedia Commission (MCMC).
The enhancement of container security using an online RFID
track and trace system reduces the risk of terrorism, dangerous
chemicals, contraband, etc from reaching our borders whilst
increasing the efficiency of container movement through
Customs checkpoints. The transparency of the online tracking
system also helps increase Malaysia’s ranking within Transparency
International and World Bank’s Competitiveness Index.
The Malaysian swiftlet nest industry makes up 20 per cent of the
global market share and we compete with a significant number
of fakes or adulterated swiftlet nests from neighbouring countries,
some of which are smuggled into Malaysia for re-export to China.
Therefore the second project within the EPP is the Swiftlet Nest
Online Traceability System that uses RFID technology to ensure
tracking and traceability of high quality and sustainable swiftlet
nest production in Malaysia to high value markets in China, Japan
and Taiwan. This project is jointly led by MCMC and Department
of Veterinary, Ministry of Agriculture.
Currently, Malaysia is the only country in Southeast Asia with the
rights to export directly to China, the world’s largest swiftlet nest
market.
Achievements
The Security and Trade Facilitation project successfully met its
target of completing trials at 10 Customs checkpoints in Malaysia.
As a result, the clearance process by Customs for each container
is quicker by 43 minutes. To date, 18 Customs checkpoints have
been installed with the system.
This system is one of the first in the world and was cited for the
ISO TC 104/SC4 technical specifications. Following its commercial
launch on 26 September 2011, the project is now, supported by
freight forwarders in the country.
RFID Container Tracking System
Track and Trace
NKEA: Communications Content and Infrastructure EPP 1 – EPP 2
RFID Swiftlet Nest Online Traceability System
In parallel with the project in Malaysia, SmarTAG Solutions Sdn
Bhd has also completed trials with the Royal Customs of Thailand
with similar success.
On the other hand, the Swiftlet Nest Online Traceability System
was launched on 12 August 2011. A total of 60 (six per cent) out
of 980 birds’ nest houses and processing plants are currently using
the system.
Moving Forward
SmarTAG is venturing to roll out the Security and Trade Facilitation
system at 80 Customs sites nationwide in 2012. It is also in
negotiations to set the commercial rates for the service.
Under the Swiftlet Nest Online Traceability System, efforts are
underway to get 300 birds’ nest houses and processing plants
registered with a total of 3,600 transactions. The current ban
on birds’ nests by China due to high levels of nitrite has caused
excessive stocks of birds’ nests in the market.
The relevant authorities are negotiating with China for the level
of the acceptable nitrite. Once the import ban by China is lifted,
Malaysia’s swiftlet nest exports done via the Swiftlet Nest Online
Traceability System will have added security that ensures the
authenticity of birds’ nests from Malaysia.
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