Collaboration to Leverage the ‘Zhejiang Model’ in Advancing Smart Cities, AI Ecosystems and Digital Governance
KUALA LUMPUR – The Malaysia Digital Economy Corporation (MDEC) has signed a Letter of Intent (LOI) with Zhejiang University, marking a significant milestone in strengthening bilateral collaboration in the fields of Artificial Intelligence (AI), smart cities, and digital economy innovation.
This strategic partnership will explore the successful ‘Zhejiang Model’ of digital governance, a framework that has positioned Zhejiang as a global benchmark in digital transformation.
“MDEC is proud to partner with one of China’s most prestigious universities to further Malaysia’s ambition of becoming a leading digital nation under the MADANI Government,” said Anuar Fariz Fadzil, CEO of MDEC. “This partnership reinforces MDEC’s core mission to build a vibrant digital ecosystem—one that nurtures future-ready talent, drives innovation, and supports advanced research.”
The collaboration will prioritise areas critical to Malaysia’s digital transformation agenda, including talent development, AI security, enhanced data management, and the development of inclusive smart cities.
A Legacy of Innovation: Zhejiang University
With over a century of excellence, Zhejiang University is renowned for shaping future technology leaders and spearheading AI breakthroughs. One of its notable alumni, Liang Wenfeng, founded DeepSeek, a pioneering generative AI company that has significantly lowered the cost barriers of high-performance AI models—accelerating global access to next-gen technology.
“This collaboration will enable us to tap into Zhejiang’s thriving AI ecosystem, fostering deeper ties between government, academia, and industry while empowering digital talent,” Anuar added.
Strengthening Bilateral Ties and Economic Impact
MDEC’s efforts under the Malaysia Digital Initiative continue to drive robust foreign direct investment (FDI) and export growth. In 2024 alone, Chinese companies participating in Malaysia Digital committed RM11.9 billion in investments, while Malaysia Digital companies exported an estimated RM503.4 million to China.
Top contributors in these efforts included Vitrox Corporation Berhad, Sea Gamer Mall, Pentamaster Corporation Berhad, Inari Amerton, and Juwai-IQI Holdings, with strong representation from the semiconductor, gaming, and PropTech industries.
“These achievements reflect the strength of our digital trade ties with China,” said Anuar. “The MDEC–Zhejiang University partnership will enhance our capabilities even further, serving as a catalyst for innovation, economic growth, and regional collaboration.”
A Forward-Looking Regional Vision
Malaysia also stands to benefit from deep insights into the operationalisation of the ‘Zhejiang Model’, which integrates digital innovation across all levels of government and society.
“As Malaysia assumes the ASEAN Chairmanship this year, this partnership represents a forward-looking step in positioning AI and digital innovation as key pillars of regional progress,” said Anuar. “It not only reinforces our national commitment to digital transformation but also opens new pathways for collaboration throughout ASEAN.”
This latest development follows the successful state visit by President Xi Jinping of the People’s Republic of China to Malaysia, where he met with Prime Minister Datuk Seri Anwar Ibrahim and Minister of Digital Gobind Singh Deo, further deepening bilateral digital cooperation between both nations.
