BEIJING, CHINA – 14 April 2025 – In a landmark move to catalyse cross-border AI innovation and digital economy collaboration, Systech Bhd (“Systech”) has signed a Strategic Cooperation Memorandum (SCM) with Beijing Daxing International Business Service Co., Ltd. (“BDIB”) and Permodalan Kedah Berhad (“PKB”), the investment arm of the Kedah State Government.
The signing, which took place in Beijing, marks a tripartite alliance that aims to facilitate artificial intelligence (AI) development, digital transformation, and regional infrastructure growth by connecting Chinese digital enterprises with Malaysia’s growing tech ecosystem.
Bridging Two Economies Through Innovation
The partnership represents a major step in aligning public and private sector collaboration across China and Malaysia to promote investment, digital innovation, and sustainable development in the digital economy.
BDIB, the operating entity of the Beijing Innovation Hub for Digital Economy Enterprise Going Global (“the Hub”), plays a key role in supporting Chinese digital companies expanding internationally. Backed by the Ministry of Industry and Information Technology and the Beijing Municipal Bureau of Economy and Information Technology, the Hub offers a full-service platform for outbound enterprises, covering policy support, legal compliance, talent linkage, brand localisation, and more.
Systech to Serve as Malaysian Digital Integration Partner
With extensive capabilities in AI, IoT, cybersecurity, and digital transformation, Systech will act as the primary local partner facilitating the market entry of Chinese digital firms. Responsibilities include:
- Providing localized landing services
- Offering digital transformation and project management support
- Assisting in operational setup within Malaysia
PKB to Lead Infrastructure and Investment Facilitation
PKB will play a critical role in land development and investment facilitation, particularly in high-potential sites such as Kulim Hi-Tech Park and the upcoming Kedah Aerotropolis. These projects will be supported by state-backed incentives, infrastructure development, and regulatory facilitation.
“This strategic cooperation is a key pillar of Kedah’s ambition to attract impactful digital investments,” said Encik Mohd Azad Bin Jasmi, CEO of PKB. “Through this collaboration, we will position Kedah as a top-tier destination for global tech and AI enterprises.”
Mr. Chang Xuezhi, CEO of BDIB, added, “This partnership opens a new chapter in our global expansion journey. Malaysia’s stability and tech-friendly landscape make it an ideal partner for cross-border collaboration. We also look forward to welcoming Malaysian companies to the Beijing Hub through this reciprocal initiative.”
“This is about building a sustainable, cross-border digital ecosystem,” said Dato’ Derrick Hooi, Managing Director of Systech Bhd. “By combining our digital expertise with BDIB’s international platform and PKB’s strategic land assets, we’re laying the foundation for long-term digital transformation and AI integration between China and Malaysia.”
Advancing MyDIGITAL and AI Innovation Goals
The agreement outlines collaboration in the following areas:
- Establishment of overseas service centers and representative offices
- Joint bilateral exchange and innovation programmes
- Full-stack support services (compliance, talent matchmaking, branding)
The collaboration aligns with Malaysia’s MyDIGITAL framework and supports the National Artificial Intelligence Office (NAIO) in its mission to establish Malaysia as a regional AI and digital innovation hub.
The SCM is effective for an initial term of one year, during which priority projects will be jointly identified and advanced through dedicated working groups.
