One of the National Key Economic Areas (NKEA) of the Economic Transformation Programme (ETP) is the Communications, Content and Infrastructure (CCI) sector. To ensure visibility, transparency and security in trade and supply chains, a special project was done as part of the ETP initiative. Smartag Solutions Berhad, an MSC-status company that specialises in Radio Frequency Identification (RFID) technology is deploying an innovative tracking system for trucks at all customs check points across the nation and beyond the borders.

Trial projects started in June with logistics companies DHL, TNT, Federal Express, Western Digital and Priority Cargo onboard the programme. Speed, efficiency and reliability are crucial in logistics companies and Smartag Solutions Berhad created a successful system that monitors and track containers minus the trouble of messy documentation. How it works is like this:

1)      An RFID seal is placed on a reader where data is keyed in into a secured and encrypted software system. Login is required and the data of the items in the container are selected to be shipped. The user-friendly interface requires only a few minutes and a customs form is generated. Only one document is needed for customs clearance.

2)      The seal now has all the data of the items and from the system, authorised users can track each checkpoint the truck goes through including the timestamp.

3)      If the seal is tampered, the information is available on the system with the exact timestamp. This is to ensure that the goods are secured and there is visibility in the system.

4)      An RFID scanner is placed at every checkpoint and the driver of the truck only needs to pass a single document for customs clearance. The customs officer will then key in the data into the system.

5)      From point A to point B, at every checkpoint the same process is done until the last stop. From the system, users are able to determine the time it has arrived at the destination and that the seal has not been tampered.

Ong Kah Leong, Assistant Manager, Custom Brokerage and Transportation of DHL Global Forwarding explaining the system process

Ong Kah Leong, Assistant Manager, Custom Brokerage and Transportation of DHL Global Forwarding says, “The RFID system provides a faster clearance time, simplifying things and promotes a paperless environment. It reduces waiting time at customs checkpoints and as a logistics company, speed is essence. By implementing this system, DHL meets the expectations of the customer by reducing the delivery time to up to 50-percent.”

Smartag Solutions Berhad (not to be confused with the toll system) has invested RM3 million in this project and the technology is developed locally. The parts are manufactured in China but the servers are based in Putrajaya.

PK Lim, Chief Executive Officer of Smartag Solutions Bhd says that the company aims to deploy this service to the 800 customs checkpoints in the country within the next two years. The Royal Malaysian Customs are receptive towards this project and it has improved the efficiency and reduced the use of multiple documents.

For this project, there have been 1670 successful cases to date with zero failures or complications. There has been an estimated 40 tonnes of goods brought in with this system and 30 tonnes of goods being brought out of the checkpoints.

Dinesh Kanapathy, Regional Network Manager of Asia Road Network and TNT Express Worldwide

Dinesh Kanapathy, Regional Network Manager of Asia Road Network and TNT Express Worldwide says that the Smartag RFID solutions have done a great job by deploying the system. Smartag Solutions Berhad and TNT Express Worldwide have worked together in similar projects in Thailand. Kanapathy hopes that this system can be deployed at an ASEAN level, starting from the Singapore customs check point up to Thailand. By 2015, TNT Express Worldwide plans to extend the RFID system into the Indochina route.