Malaysia’s digital economy ambitions just received a major boost. On 22 April 2025, the Malaysia Digital Economy Corporation (MDEC) signed a Letter of Intent (LOI) with China’s Zhejiang University, marking a strategic collaboration to co-develop smart cities, digital governance, and an AI-ready ecosystem in Malaysia — drawing from China’s successful ‘Zhejiang Model’.
This move comes hot on the heels of Chinese President Xi Jinping’s diplomatic visit to Malaysia, aligning with the MADANI Government’s vision of making Malaysia a leading digital nation in ASEAN.
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Jodee Tan chevron_right
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Zhejiang University: 51st in Global Rankings
Zhejiang University is known for its rich legacy in the tech and AI industry, having alumnis like Liang Wenfeng, founder of DeepSeek — a breakthrough player in the Generative AI space — whose innovations made high-performing AI models significantly more cost-efficient and accessible.
The university is also known for its involvement in cross-sector AI adoption in public services, urban planning, and education.
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.
Partnership in AI Ecosystem, Talent, and Smart Cities
According to MDEC CEO Anuar Fariz Fadzil, this partnership is designed to address several high-impact focus areas:
- AI ecosystem development based on the Zhejiang Model
- Talent incubation through collaborations between academia, industry, and government
- Smart city innovation, backed by sustainable, inclusive frameworks
- AI safety and data management aligned with digital sovereignty goals
The Zhejiang Model is China’s benchmark for digital governance and public service delivery. Malaysia hopes to adopt similar frameworks, including:
- Integrated urban digital platforms
- Data-driven government services
- Public-private-academic collaboration on AI
In 2024, Chinese companies under the Malaysia Digital programme committed investments amounting to RM11.9 billion. Among the top 5 companies by value include Vitrox Corporation Berhad, Sea Gamer Mall, Pentamaster Corporation Berhad, Inari Amerton and Juwai-IQI Holdings. Big contributions were largely from the verticals of semiconductor, gaming and PropTech industries.
With this strategic diplomacy, Malaysia is poised to shape the regional landscape in cooperation on AI governance, digital standards, and talent mobility.
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