The initiative seeks to bring together manufacturers, logistics service providers, retailers, infrastructure providers and solutions providers in the high-tech, pharmaceutical and consumer goods sectors, thus creating five RFID-enabled supply chain clusters by 2006.
"RFID is a very important development which the industry should look at seriously," said IDA chairman Lam Chuan Leong. "The development of new standards such as EPC (Electronic Product Code) has spurred the use of RFID in supply chain applications. Falling cost of RFID tags has also opened up possibilities for mass adoption."
Speaking at a conference today, he cited moves by retail giant Wal-Mart and the U.S. Department of Defense to make RFID mandatory for their suppliers.
"Mandates like those issued by large buyers affect Singapore because we are the world's second busiest port and a key logistics hub," said Lam. "Singapore cannot ignore these developments in RFID. If we do, it will result in missed opportunities, and Singapore risks losing its position in the global supply chain."
He added that there have been some significant implementations of RFID in Singapore already. Notably, in 1998, all publications at the national libraries were tagged with RFID chips to make it easier to loan, return and sort books. During last year's Severe Acute Respiratory Syndrome outbreak, research institutes also developed RFID solutions to help contact tracing.
This new initiative by IDA, designed to propel the country into becoming a regional RFID hub, will see the alignment of the frequency spectrum with international standards to ensure global interoperability. In addition, the government body will form a Singapore RFID Alliance comprising industry and academic representatives to facilitate dialogue and sharing of best practices.
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