Systech Bhd Secures Strategic Tripartite Partnership to Drive Cross-Border AI and Digital Economy Growth

Systech Bhd (KLSE: 0050), a full-fledged digital solutions provider, has signed a Strategic Cooperation Memorandum (SCM) with Beijing Daxing International Business Service Co., Ltd. (BDIB) and Permodalan Kedah Berhad (PKB), marking a major milestone in regional AI development, digital integration, and infrastructure expansion.

The collaboration brings together public and private players from Malaysia and China to promote investment and innovation in the digital economy. It aligns with Malaysia’s national digital ambitions under the MyDIGITAL initiative and complements the strategic direction of the National Artificial Intelligence Office (NAIO).

A Strategic Alliance Across Borders

BDIB operates the Beijing Innovation Hub for Digital Economy Enterprise Going Global, China’s first government-led platform focused on helping digital enterprises expand internationally. Backed by key Chinese ministries and municipal authorities, the Hub offers full-spectrum outbound services, from regulatory support to site selection and talent matchmaking, to fast-track international growth for Chinese tech companies.

Through this partnership, Systech will serve as the on-the-ground facilitator in Malaysia, helping Chinese digital enterprises enter Southeast Asian markets. Leveraging its strengths in AI, IoT, digital transformation, and cybersecurity, Systech will lead localisation efforts, manage cross-border projects, and support setup and operations of incoming businesses.

PKB, a wholly owned subsidiary of the Kedah Chief Minister Incorporated, will contribute by identifying and developing strategic land assets such as the Kulim Hi-Tech Park and the upcoming Kedah Aerotropolis. These developments will come with state-backed incentives, infrastructure support, and regulatory facilitation, making Kedah an attractive base for foreign digital economy players.

A Platform for Scalable Growth

Under the one-year initial term of the SCM, the partners will roll out overseas service centres, set up joint working teams, and launch bilateral exchange programs. The goal is to provide full-stack support—from branding and compliance to talent sourcing, allowing Chinese digital players to embed within Malaysia’s ecosystem while also boosting local innovation.

This landmark collaboration positions Malaysia, and specifically Kedah, as a gateway for Chinese digital enterprises aiming to expand into Southeast Asia. It also underscores the rising importance of cross-border cooperation in driving the next phase of AI integration, smart infrastructure, and digital economic development.

For investors, the message is clear: this is a ground-floor opportunity to back regional digital transformation, gain access to Southeast Asia’s emerging tech markets, and participate in the shaping of a new AI-driven economy.

$SYSTECH / 0050 (SYSTECH BHD)