The Malaysia Digital Economy Corporation (MDEC) and Zhejiang University have recently signed a letter of intent (LOI) to collaborate on digital transformation, artificial intelligence (AI) ecosystem and smart cities based on the ‘Zhejiang Model’, a successful digital governance transformation framework.

MDEC Chief Executive Officer Anuar Fariz Fadzil said in a statement on Tuesday that 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.

He also added that it closely aligns with the government’s digital transformation agenda, prioritizing key areas such as talent development, enhanced data management, AI security and smart cities.

Zhejiang University, with a legacy spanning more than a century, is widely recognized for its role in nurturing tech talent and advancing AI innovation.

It notably shaped Liang Wenfeng, the Founder of DeepSeek — a breakthrough player in the Generative AI space — whose innovations have made high-performing AI models significantly more cost-efficient and accessible, accelerating the democratization of AI technologies worldwide.

MDEC’s investments and exports programs under the Malaysia Digital Initiative have successfully landed substantial foreign direct investments (FDI) and created significant traction on exports to China.

In 2024, Chinese companies under the Malaysia Digital program committed investments amounting to MYR 11.9 billion ($2.71 billion).

Malaysia Digital companies exported an estimated RM503.4 million to China. Among the top five companies by value include Vitrox Corporation Berhad, Sea Gamer Mall, Pentamaster Corporation Berhad, Inari Amerton and Juwai-IQI Holdings, with a strong contribution from the verticals of 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.

According to him, these aspects go beyond technical initiatives to serve as strategic enablers that support Malaysia’s broader goals: boosting our digital competitiveness, nurturing a future-ready workforce and creating inclusive and sustainable smart cities.

The statement also highlighted that 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.

“As Malaysia serves as ASEAN Chair this year, this partnership lays the foundation for AI-driven progress that extends well beyond our two nations,

“It reinforces our nation’s commitment to strengthening regional ties and advancing shared goals in digital transformation,” said Anuar.

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

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