MDEC–ZHEJIANG Uni ink partnership to spur digital economy innovation

• Reinforces MDEC’s core mission to build a robust digital ecosystem
• In 2024 China commits US$2.7b investments under Malaysia Digital programme

The Malaysia Digital Economy Corporation (MDEC) and Zhejiang University, in Hangzhou, China signed a Letter of Intent (LOI) last week to collaborate on digital transformation, AI ecosystem and smart cities based on the ‘Zhejiang Model’, a digital governance transformation framework.

Anuar Fariz Fadzil, MDEC CEO said the partnership is strategic to Malaysia’s ambition of becoming a leading digital nation under the MADANI Government.

“This partnership reinforces MDEC’s core mission to build a robust digital ecosystem that incubates future-ready talent, drives innovation and supports cutting edge research,” said Anuar. It closely aligns with the government’s digital transformation agenda, prioritising key areas such as talent development, enhanced data management, AI security and smart cities.

Malaysia stands to gain valuable insights into the ‘Zhejiang Model’ of digital governance, which offers a proven framework for integrating digital innovation across all levels of society.

Zhejiang University, in the province of Zhejiang with a legacy spanning more than a century, is recognised for its role in nurturing tech talent and advancing AI innovation. Globally, it is ranked 44 in QS World University Rankings 2024, 55 in the Times Higher Education (THE) World University Rankings 2024.

It notably counts Liang Wenfeng, the founder of DeepSeek whose innovations have made high-performing AI models significantly more cost-efficient and accessible worldwide, as among its alumni. Laing did his masters at the Zhejiang University College of Information Science & Electronic Engineering, 15 years ago.

Meanwhile, MDEC said its investments and exports programmes under the Malaysia Digital Initiative have created significant traction on exports to China.

In 2024, Chinese companies under the Malaysia Digital programme committed investments amounting to US$2.71 billion (RM11.9 billion). At the same time, Malaysia Digital companies exported an estimated US$114.65 million (RM503.4 million) to China. Among the top 5 companies by value include Vitrox Corporation Bhd, Sea Gamer Mall, Pentamaster Corp Bhd, Inari Amerton and Juwai-IQI Holdings, with strong contribution from the semiconductor, gaming and PropTech industries.

“All these components are key in developing a successful digital network. The collaboration will include exploring Zhejiang University’s thriving AI ecosystem, particularly in fostering collaboration among government, universities, the private sector as well as empowering digital talent,” said Anuar.

The MDEC-Zhejiang University development follows on from the People’s Republic of China President, Xi Jinping’s successful visit to Malaysia last week, which included deepening bilateral cooperation on the digital front after having met with Prime Minister Anwar Ibrahim together with other ministers including Minister of Digital, Gobind Singh Deo.