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)
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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)
Systech Sets to Begin a New Bullish Wave and Heading to RM0.35?
Systech Berhad saw a sharp spike in its share price today, rising by 15.2% as investor sentiment turned bullish on the back of what is believed to be the completion of its recent private placement exercise. The sudden uptick in price action has placed Systech firmly back in the spotlight, sparking speculation that a new substantial shareholder may have come on board with a fresh strategic agenda.
While official announcements remain pending, market observers are reading the surge as a signal of renewed confidence in the company’s growth potential. The strategic involvement of a new investor could pave the way for operational synergies, digital expansion, or corporate restructuring aimed at unlocking shareholder value.
With today’s price rally, Systech appears poised to revisit its six-month high of RM0.35—a level last seen before market volatility set in. If momentum continues and a clear strategic direction is unveiled, the current move may just be the beginning of a broader re-rating for the stock.
Rated “BUY” for Systech Berhad.
$SYSTECH / 0050 (SYSTECH BHD)
Technical Base Forming–Systech Bhd (0050)
Current Price: RM0.335
Support (S1, S2): RM0.305, RM0.315
Resistance (R1, R2/TP): RM0.360, RM0.400
Systech Bhd (KLSE: SYSTECH) has been in a downtrend since June 2024, however with a strong support base forming between the key RM0.305 level to RM0.330 level. As indicated by the bottom chart, we also see a slow accumulation process is ongoing for SYSTECH.
Resistance wise, we see some selling pressure at RM0.360 level onwards to RM0.400, which could be our profit taking levels respectively. Based on the subsided selling pressure, we think now (RM0.335) is a good BUY opportunity for SYSTECH.
$SYSTECH / 0050 (SYSTECH BHD)
Systech Partners with EH Integrated Systems to Operate AI Data Center
SYSTECH Bhd has entered a collaboration agreement with EH Integrated Systems Sdn Bhd (EISSB) to establish AI data centres and provide generative artificial intelligence (AI) digital solutions across Malaysia.
The partnership aims to leverage EISSB’s expertise in high-performance computing infrastructure alongside Systech’s capabilities in IoT, digital transformation, automation, and cybersecurity.
Together, they will operate AI data centres, focusing on hosting and deploying applications and software using the computing power of AI data centres.
Systech will handle the design, coding, testing, and maintenance of software to ensure compatibility with EISSB’s infrastructure and optimal performance for the project.
EISSB will oversee the design, implementation, and monitoring of the data centre infrastructure, including storage systems, networking, and cooling systems.
Systech ED, Datuk Derrick Hooi, stated that the partnership signifies a pivotal move in the company’s strategic growth plan.
“By leveraging our expertise in IoT, digital transformation, automation, and cybersecurity, and with the support of EISSB’s high-performance AI data centre infrastructure, we are poised to deliver superior AI data centre and AI digital solutions. This collaboration is aimed at enhancing our service offerings and driving expansion into new markets. We look forward to a successful partnership that unlocks the potential of both companies,” he said.
$SYSTECH / 0050 (SYSTECH BHD)
https://cutt.ly/JesyQNlm
The New AI Investment Target on Bursa Malaysia?!
As Artificial Intelligence (AI) becomes more of a realisation than just another buzzword, investors’ capital are flocking towards REAL integrators of AI solutions. However, not many investors had realised the potential of this company, YET.
Systech Berhad, a major player in HR management solutions, cybersecurity, and e-logistics, has partnered with EH Integrated Systems Sdn. Bhd. (EISSB). This collaboration is all about supercharging Malaysia’s digital infrastructure with top-of-the-line data centres.
EISSB, known for its top-notch industrial-grade servers, is bringing the power of SuperMicro's H100 model into the mix. For those not in the know, the H100 is a beast in the server world, offering up to 400 teraflops of performance. This means it can handle massive data tasks like AI and machine learning without breaking a sweat.
Who's Doing What?
Systech will handle all the software magic. They’re tasked with designing, coding, testing, and maintaining the software that will run these data centres. Their goal? To make sure everything runs smoothly and efficiently on EISSB’s hardware.
Meanwhile, EISSB will take care of the hardware. They’ll source, install, and manage servers, storage systems, networking gear, and cooling systems. Basically, they’re making sure all the physical components are top-notch and running like a well-oiled machine.
Data centres are the backbone of modern digital infrastructure, and the demand for them in Malaysia is skyrocketing. With the increasing adoption of AI and big data analytics, robust data processing and storage solutions are more critical than ever. The Malaysian data centre market is set to grow at an annual rate of 12.2% from 2020 to 2026. This partnership is perfectly timed to meet these rising demands.
This partnership between Systech and EISSB is set to drive significant growth and innovation in Malaysia’s digital landscape. With SuperMicro's powerful H100 servers and a clear focus on meeting the growing need for advanced data solutions, these two companies are poised to make a substantial impact.
Most importantly, this is just the starting point for Systech in their AI journey, and some goes for their share price. If you are looking to jump onto the bandwagon for AI now, Systech is one of the rare opportunities that poses in the market NOW!
$SYSTECH / 0050 (SYSTECH BHD)
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KUALA LUMPUR: Systech Bhd has entered into a collaboration agreement with EH Integrated Systems Sdn Bhd (EISSB), a company specialising in providing industrial-grade servers and storage solutions.
OTHERSCOLLABORATION AGREEMENT ENTERED BETWEEN SYSAIU SDN. BHD., A WHOLLY OWNED SUBSIDIARY OF SYSTECH BHD. WITH EH INTEGRATED SYSTEMS SDN. BHD. FOR THE ESTABLISHMENT, DEVELOPMENT AND OPERATION OF DATA CENTERS AND ANCILLARY BUSINESSES.
MULTIPLE PROPOSALSSYSTECH BHD ("SYSTECH" OR "COMPANY")
(I) PROPOSED SHARES ISSUANCE;
(II) PROPOSED ACQUISITION;
(III) PROPOSED BONUS ISSUE OF WARRANTS; AND
(IV) PROPOSED ESS
(COLLECTIVELY, REFERRED TO AS THE "PROPOSALS")
SYSTECH - ISSUANCE OF 160,656,361 WARRANTS IN SYSTECH ("WARRANTS") ON THE BASIS OF 1 WARRANT FOR EVERY 4 EXISTING ORDINARY SHARES IN SYSTECH HELD BY THE ENTITLED SHAREHOLDERS OF THE COMPANY ("BONUS ISSUE OF WARRANTS")