The integration and adoption of the Internet of Things (IoT) in Malaysia has opened the door for various sectors to streamline operations, enhance efficiency, and improve overall productivity.
Now, many businesses are turning to experienced IoT companies in Malaysia for their expertise in implementing IoT solutions. One industry that is particularly benefitting from these advancements is healthcare.
Healthcare providers are beginning to realise the potential of IoT technology in improving patient care and reducing costs, especially remotely.
Furthermore, IoT technology in Malaysia is being used to develop one of the world’s most advanced healthcare townships, which is primarily focused on a patient-centric approach.
This township aims to create a seamless and integrated healthcare experience for patients through the use of IoT devices, sensors, and data analytics.
In this research article, we will explore the landscape of IoT in Malaysia, eight key sectors being affected by the introduction of IoT in the region, and the challenges businesses face when implementing such connectivity solutions.
How Big is the IoT Market in Malaysia?
In 2024, the Malaysian IoT market is valued at US$2.561 billion with the Industrial IoT (IIoT) sector being the country’s most valuable market, valued at US$682.3 million.
Within the next five years, Malaysia’s IoT market is expected to experience a compound annual growth rate (CAGR) of 12.69%, resulting in a market volume of US$4.654 billion by 2029.
The growth of the Internet of Things (IoT) industry in Malaysia is driven by various factors such as government initiatives, increasing demand for smart devices, and growing investments from local and international players.
Additionally, the country’s development of the innovative KL Wellness City has seen a significant rise in the adoption of IoT devices in healthcare, further boosting the market growth and paving the way for Malaysia to become an emerging healthcare giant.
The Malaysian government has also introduced initiatives such as the National Industry 4.0 Policy Framework and Malaysia Digital Economy Blueprint to encourage the development and adoption of IoT technologies in various sectors, cementing Malaysia as a high-tech nation by 2030.
However, when compared to the USA (the world’s most dominant IoT market), Malaysia’s IoT market is still significantly smaller, with the USA’s IoT market valued at US$342.50 billion in 2024.
Despite this, Malaysia’s IoT market potential is significant and has shown promising growth over the years, making it an attractive market for local and international businesses to invest in.
What is the IoT Roadmap in Malaysia?
As Malaysia looks to continue growing its IoT market, its government has set out Malaysia’s National Internet of Things (IoT) Strategic Roadmap to guide the country towards its goals.
Launched in 2015, the key objectives of the roadmap include promoting the adoption and use of IoT technologies, nurturing local talents and skills, and creating a conducive environment for businesses to thrive in the IoT sector. This is done by:
- Cultivating a Supportive Ecosystem: The roadmap endeavours to establish an environment that champions the use of IoT technology.
- Encouraging IoT Implementation: The roadmap fosters the development and execution of IoT projects.
- Formulating an Open Innovation Framework: The initiative seeks to harmonise variations in IoT technology, thereby increasing the competitiveness of local technopreneurs.
- Developing an Open Community Data Framework: The strategy is designed to enable seamless information exchange between different industries and users.
- Launching Capability and Skill Enhancement Programmes: Efforts are made to support local SME technopreneur firms by providing them exposure to IoT technology.
- Conducting Pilot Projects: The roadmap includes initiating pilot projects that serve as exemplars for the advancement and deployment of IoT technology.
- Creating “IoT Malaysia”: The plan involves establishing a Community of Practice dedicated to nurturing and advancing the IoT ecosystem.
The introduction of projects such as 1GovCloud also highlights the government’s dedication to improving the public IoT sector, allowing for better data management and information sharing between government agencies.
What is the National Industry 4.0 Policy Framework?
The National Industry 4.0 Policy Framework is strategically designed to encourage the widespread adoption of Industry 4.0 technologies in Malaysia, particularly targeting accessibility for small and medium-sized enterprises (SMEs).
Industry 4.0, commonly referred to as the Fourth Industrial Revolution (4IR) represents the ongoing digital transformation inside the manufacturing sector, which incorporates the use of IoT devices, automation, and data exchange.
The framework’s objectives involve establishing a fertile environment for Industry 4.0 growth, advocating for trust within a digital society, enhancing life quality via technological advances, and delivering more streamlined public services.
Additionally, it seeks to capitalise on the power of ecosystem partnerships and foster the development of integrated manufacturing and technological hubs.
The introduction of this framework has laid the foundation for sustained growth in Malaysia’s IoT market and inspired the creation of new jobs, increased productivity, and improved overall efficiency across sectors.
Use Cases of the Internet of Things in Malaysia
As IoT technology becomes more sophisticated and advanced, the Internet of Things has proven itself to be a powerful tool in revolutionising various industries around the world.
As of 2024, countless businesses are seeking the specialised expertise of IoT companies in Malaysia to help elevate their operations and services.
Below are eight key sectors being shaped by the integration of IoT technology in Malaysia.
Healthcare
The adoption of IoT in Malaysia has seen a heightened focus on remote healthcare services and the development of the KL Wellness City (KLWC).
For remote healthcare, IoT devices have been utilised to monitor patients’ health status and vital signs remotely, reducing the need for physical consultations and minimising exposure risks.
In addition, IoT-enabled healthcare solutions such as smart pill dispensers and wearable health trackers have also gained popularity among Malaysians.
However, the biggest development in Malaysia’a healthcare sector has been the construction of the KL Wellness City, a purpose-built township in Bukit Jalil designed for innovative healthcare and wellness tourism.
Expected to be completed by 2026, the KLWC will boast a 624-bed International Tertiary Hospital, medical specialist suites, innovation laboratories, and clinical R&D facilities, all equipped with IoT technology for seamless data management and communication.
With a focus on patient-centric, technology-driven healthcare services, KLWC aims to position Malaysia as a top destination for medical tourism while also improving the country’s overall healthcare standards.
Industrial IoT (IIoT)
Valued at US$682.3 million, Malaysia’s IIoT industry is the most significant contributor to the country’s IoT market, primarily driven by the manufacturing sector.
The adoption of IIoT in Malaysia’s manufacturing industry has resulted in increased efficiency, improved production processes, and reduced costs throughout the production and export of electrical and electronics (E&E) products.
As of 2024, manufacturing makes up 23% of Malaysia’s GDP, and the use of IIoT technology is set to further boost this sector’s growth.
The adoption of this technology aligns with the move towards Industry 4.0, where traditional manufacturing processes are being transformed into smart factories.
Smart Cities
In Malaysia, there are five cities involved in smart city pilot projects: Kuala Lumpur, Kulim, Kota Kinabalu, Johor Bharu, and Kuching – with Kuala Lumpur being considered the 73rd smarted city in the world, out of 142 cities.
In 2023, Kuala Lumpur was ranked in 89th place, showing a significant improvement over 12 months. A key reason for this sustained growth in the smart city sector is the introduction of the Smart City Framework Malaysia (MSCF) in 2019.
The MSCF is a comprehensive national framework designed to serve as a guide and reference for Local Authorities, state governments, federal ministries and departments, and other stakeholders involved in the development of smart cities in Malaysia.
The document contains seven key components of a smart city, policies, proposed strategies and initiatives, and a unique definition of the term ‘smart city’ in the context of Malaysia.
These elements serve as a valuable resource for those interested in implementing smart city initiatives across Malaysia, ensuring alignment with contemporary developments and advancements in the field.
Smart Homes
60% of urban homes in Malaysia have at least one smart device in their household, with the number set to rise in the coming years.
IoT-enabled smart home devices offer homeowners greater control and convenience over their daily activities, helping improve energy efficiency, cost savings, daily convenience and home security.
Much like around the world, some of the most popular IoT devices used in Malaysian smart homes include smart meters, smart lighting systems, voice assistants like Google Home and Amazon Echo, and smart home security systems.
With an increasing demand for more connected and convenient living experiences, we will likely see significant growth in the use of IoT technology in Malaysian homes within the next five years.
Smart Agriculture
The production and farming of rubber, palm oil and cocoa are Malaysia’s biggest agricultural industries, and the adoption of IoT technology has brought significant improvements to these sectors.
For example, the use of IoT-enabled irrigation systems has resulted in more efficient usage of water resources, reducing costs and increasing crop yields.
Additionally, IoT sensors are used to monitor soil conditions and plant health, providing real-time data that allows farmers to make informed decisions about their crops and the environment they’re growing in.
These advancements have not only increased the productivity of Malaysian agriculture but also reduced its environmental impact, promoting sustainable practices for future generations.
Education
The use of IoT technology has also begun to make an impact in Malaysia’s education sector.
IoT-enabled devices, such as smart boards, have been used to enhance the learning experience for students, making lessons more interactive and engaging.
Additionally, universities in Malaysia are starting to incorporate IoT into their research and development activities, particularly in areas such as smart buildings and environmental monitoring.
As the country continues to develop its digital infrastructure and embrace new technologies, we can expect further advancements in the use of IoT in education.
Retail
The implementation of IoT in a retail environment has become relatively commonplace all around the world, and Malaysia is no exception.
One of the most significant examples is the use of RFID technology by retail giant Mydin to track inventory levels, reduce stock shortages and improve customer service.
Moreover, IoT-based customer analytics have been utilised by several brick-and-mortar stores to understand customer behaviour and preferences better, resulting in a more personalised shopping experience.
Looking forward, we can expect to see further integration of IoT technology in the retail sector as digital transformation continues to shape consumer expectations and habits.
Logistics and Transportation
The adoption of IoT technology in the logistics and transportation industry has brought significant improvements to Malaysia’s supply chain management.
IoT-based tracking systems have allowed for real-time monitoring of shipments, improving efficiency, reducing delays and increasing customer satisfaction.
In addition, the use of smart sensors on vehicles has enabled fleet managers to track fuel consumption, schedule maintenance, and ensure driver safety.
These advancements have not only streamlined logistics processes but also reduced costs and carbon emissions, making the transportation industry more sustainable.
Who is Managing the Internet in Malaysia?
The Malaysian Communications and Multimedia Commission (MCMC) is the primary regulator of telecommunications in Malaysia. They are responsible for managing and regulating the country’s internet service providers, ensuring fair competition and protecting consumers’ rights.
MCMC also works closely with industry players to promote Malaysia’s Internet connectivity, infrastructure development, and adoption of advanced technologies like IoT.
Who is the Largest Internet Provider in Malaysia?
Malaysia’s largest Internet service provider is TM Net (Unifi), a subsidiary of Telekom Malaysia (TM). They provide high-speed broadband services to both residential and business customers, with a coverage of over 9.2 million homes in Malaysia.
Other notable internet providers in Malaysia include:
- Maxis
- TIME dotCom
- Digi Telecommunications
- Celcom Axiata
- P1 Networks
Challenges of IoT in Malaysia
Despite being a transformative technology around the world, the introduction of the Internet of Things in Malaysia faces some challenges.
Each of these IoT issues can be combated with proper policies and strategies, however, they require careful consideration to ensure the successful implementation and adoption of IoT in Malaysia.
Partnering with an experienced IoT provider, investing in cybersecurity measures, and providing proper education and training for users are all crucial steps to address these challenges.
Privacy and Security Concerns
As with any country, the increasing use of IoT technology brings concerns about privacy and security.
In Malaysia, there have been issues raised regarding the collection and use of personal data by IoT devices, raising concerns about potential data breaches and privacy violations.
To address these concerns, the Personal Data Protection Act was introduced in 2010 to regulate the processing of personal data by individuals and organisations in Malaysia. This includes the use of IoT devices and their data collection practices.
What’s more, Caburn Telecom works tirelessly with clients to ensure security is a top priority in the design and implementation of IoT solutions.
Compatibility and Interoperability
Another challenge facing the widespread adoption of IoT in Malaysia is compatibility and interoperability issues.
As different manufacturers develop their own IoT devices, ensuring compatibility and interoperability among them can be a challenge.
This can lead to potential communication barriers between devices, limiting the full potential of IoT technology and hindering its integration into everyday life.
To address this issue, businesses within the sector are working towards developing common standards for IoT devices to ensure seamless connectivity and interoperability.
Every communication solution Caburn Telecom provides is carefully selected and tested to work seamlessly with other IoT devices, reducing the risk of compatibility issues.
Training Workforces
As more advanced technology enters individual sectors, there is a need for skilled workers who can effectively manage and utilise these technologies.
This talent gap can hinder the successful implementation and management of IoT solutions in various industries.
In Malaysia, there has been a push to train and upskill the current workforce in IoT technology to meet the growing demand for skilled professionals in this field.
Universities and training institutions are offering courses and certifications in IoT, giving individuals the opportunity to develop skills in this rapidly evolving industry.
The Future of IoT in Malaysia
Going forward, the adoption of the Internet of Things in Malaysia is set for significant growth, characterised by continual innovation and expansion across various sectors.
As the digital landscape evolves, businesses must adapt to keep pace with technological advancements and consumer expectations.
In this context, Caburn Telecom plays a pivotal role by offering state-of-the-art connectivity solutions tailored to the IoT ecosystem. We ensure that Malaysian enterprises have the connectivity infrastructure required to leverage IoT technologies effectively.
Our commitment to providing reliable and secure communication networks enables businesses to harness IoT capabilities, thereby driving operational efficiencies and enhancing customer experiences.
As Malaysia continues its digital transformation journey, Caburn Telecom remains at the forefront, empowering organisations across industries to thrive in an increasingly connected world.