Senstech eyes more RFID technology deals.

PRIVATELY-held Senstech Sdn Bhd has identified at least 11 government pilot projects for its Radio Frequency Identification (RFID) technology.

RFID is the use of tiny chips to track and identify item. The technology is already is already being used by companies involved in the logistics business.

Senstech managing director Professor Dr Azmi Hassan said the company is looking to clinch new projects in the private sector, namely with the financial institutions.

It now makes most of its money from a deal with the Home Ministry where its chips are tagged onto music compact discs (CDs) or digital versatile discs (DVDs) to show that they have been approved for distribution.

The firm is leading the Malaysia Microchip Project (MM Project), which is government-initiated, to exploit the potential of RFID technology for large-scale use.

Senstech is a special purpose vehicle charged with the planning, execution and support for the Malaysian Industry-Government Group for High Technology.

The company has substantial commercial interest in the MM Project, in which Senstech is primarily responsible to manage, coordinate and execute the operations of the MM Project.

With about 70 per cent of its business coming from the government, Azmi said, Senstech is expanding the potential of the MM Chip through new applications.

This would include industries like halal, timber and livestock as well as baggage management.

The use of RFID technology is increasing with an estimated market value of RM7 billion in 2003 and is expected to reach RM43.15 billion by 2010.

Yesterday, Senstech entered in to a memorandum of understanding with Universiti Malaysia Terengganu (UMT) to develop new uses for the technology.

UMT will use a RM200,000 grant to exploit Senstech’s RFID technology within two-year period.