Many of us already encounter radio frequency identification (RFID) or some form of wireless tracking technology every day - via ez-link cards and in-vehicle units (IUs), in library books and in the microchips used to track our pets.

Perhaps it is just a matter of time before the tiny chips make their way into what we wear, says Ms Lilian Koh, founder of the Asia RFID Hub. The year-old outfit organises events and devises training programmes to increase awareness and adoption of the technology across all businesses. "In Asia, Japan and Korea have already adopted RFID in many industries," says Ms Koh. Locally, parts of the fast-moving consumer goods, pharmaceuticals and fashion industries have embraced it; efforts have also been made in researching and developing the technology. "RFID is likely to experience explosive growth here over next few years," observes Ms Koh.

She foresees that the humble microchip is poised to redefine the textile, garment and fashion trade, creating a unique marketplace for designers, retailers, wholesalers and manufacturers of fashion apparel. The complex fashion retail business has many players, all of whom must come together seamlessly before a customer can take a new piece of clothing home.

Ms Koh says that the bigwigs in the fashion industry began to take notice of RFID about five years ago.

"Since then, it has been implemented in bits and pieces in the industry, for example to track sewing, distribution and retail processes," she adds. Now, a push from United States retail giant Wal-mart has galvanised the industry to adopt RFID, so that every link in the fashion supply chain is connected in real time.

The implications are massive. Ms Koh reels off a list of ways in which RFID will revolutionise the fashion business once chips are embedded in every article of clothing: "There is no need to take stock manually, so there will be no scope for human error; the inventory can be updated daily, so the database will be up-to-date, and stocks can be replenished automatically. Less time spent searching for stock in the back room translates to more time to serve customers," she says.

Since every piece of clothing will be traceable, quality control and anti-counterfeiting efforts will be enhanced, and processing returns will be a cinch for retailers, she adds.

"RFID is better than barcodes, which are just a classification - clothing of the same size or colour is likely to carry the same code. "With the installation of RFID chips and readers, every piece will have unique number."

Locally, the technology will be put to the test next month, when it is implemented, for the first time in South-east Asia, in a clothing retail outlet in Hougang.

According to Ms Koh, this is just the first step for the fashion industry. She says: "From the mill to the factory and the shop, the chip will accompany a piece of clothing through cutting, sewing, washing, packing, sorting, distribution, retail, and even facilitate return and warranty procedures."

This way, the whole fashion trade will be more in tune with customer needs, and will be able to respond even more quickly to market demands. With a myriad of potential applications, RFID's capabilities are endless. Ultimately, the goal is that RFID will become as ubiquitous as, and eventually replace, the barcode.

"Even 30-cent bunches of vegetables at the supermarket now come with barcodes," observes Ms Koh. "Soon, this will be the case too, with RFID."