Kedah-China Collaboration Sets Stage for New Digital Silk Road; Systech Takes the Lead in AI Integration

As Malaysia holds the ASEAN Chairmanship this year, diplomatic and economic ties between Malaysia and China continue to deepen, with digital cooperation emerging as a strategic focal point. In a significant bilateral engagement held on 14 April, the state delegation of Kedah, led by Permodalan Kedah Berhad (PKB), visited the Beijing Innovation Hub for Digital Economy Enterprises (“出海基地”) to strengthen technological collaboration and attract high-impact investments into Malaysia’s digital economy.

Hosted in Beijing’s Daxing Economic Development Zone, the meeting marked a milestone in regional partnership-building. Key participants included the Chairman of Beijing Innovation Hub 常学智, Deputy Director 王凯, and nearly a dozen Chinese digital enterprises, alongside Kedah’s PKB CEO Mohd Azad Bin Jasmi and industry veteran Dato’ Derrick Hooi, Managing Director of Malaysia-based Systech Bhd.

During the exchange, both sides discussed extensive cooperation opportunities in digital economy development, with an emphasis on AI, green technologies, and smart city solutions. The visit culminated in the signing of a strategic tripartite cooperation agreement between PKB, the Beijing Daxing International Business Service Co., Ltd. (BDIB), and Systech Bhd, establishing a framework for cross-border AI innovation and enterprise integration.

PKB's CEO Mohd Azad expressed strong support for anchoring Kedah as a regional digital hub, leveraging its rich resources and growing infrastructure including the Kulim Hi-Tech Park and the Kedah Aerotropolis. The state aims to offer favourable policies and investment incentives for foreign digital enterprises eyeing Southeast Asia as their next growth frontier.

Systech, as Malaysia’s homegrown digital transformation enabler, was designated the key local partner to facilitate the landing of Chinese enterprises into Malaysia. With core competencies in AI, cybersecurity, IoT, and enterprise automation, Systech will provide full-stack market entry services – from regulatory compliance and localisation to project execution – helping bridge China’s digital capability with ASEAN opportunities.

The signing also resonates with Malaysia’s MyDIGITAL strategy and the National Artificial Intelligence Office (NAIO) goals, reaffirming the nation’s commitment to becoming a regional AI hub. Over the next 12 months, working teams from the three parties will identify key priority projects and set up bilateral representative offices to scale their cooperative efforts.

By forging this strategic path, the collaboration signals not only an enhanced Malaysia–China relationship but also opens a promising chapter in Kedah’s transformation into a digital economy powerhouse, with Systech firmly at the helm of this new regional digital ecosystem.

$SYSTECH / 0050 (SYSTECH BHD)