Systech Bhd (“Systech”), a deep-rooted digital corporate solutions provider, has signed a Memorandum of Collaboration (“MoC”) with Permodalan Kedah Berhad (“PKB”) and Tujuh Warisan Sdn Bhd (“TWSB”) to explore the development, operation, and maintenance of AI-powered data centres, technology parks, hydrogen energy, and Artificial Intelligence Solution in Kedah, Malaysia.
This collaboration marks a significant milestone in advancing Malaysia’s AI and high-tech infrastructure, supporting the country’s digital transformation goals, and fostering a thriving AI ecosystem.
Under the collaboration, Permodalan Kedah Berhad (PKB) is reinforcing its commitment to the future of artificial intelligence (AI) by welcoming companies to participate and collaborate in advancing AI-driven initiatives. Recognizing AI as the cornerstone of future technology, PKB is taking strategic steps to position Kedah as a key player in digital transformation. Systech, as the technology partner, will spearhead AI infrastructure development, integrating high-performance computing (HPC), cloud computing, blockchain-based security solutions, and AI driven Automation System. Meanwhile, TWSB will oversee the strategic implementation, commercialisation efforts, and foreign investment opportunities, ensuring that the AI data centres and high-tech projects attract multinational companies and global investors.
Through its collaboration with Systech and Tujuh Warisan which brings advanced AI technology, PKB is aligning itself with The Greater Kedah aspiration, focusing on innovation and progress that will drive economic growth and technological excellence in the region. This partnership marks a significant milestone in Kedah’s digital evolution, fostering high-value investments and positioning the state as a hub for AI-powered solutions.
Encik Mohd Azad Bin Jasmi, Chief Executive Officer of Permodalan Kedah Berhad, stated, “We are pleased to collaborate with Systech and Tujuh Warisan on this groundbreaking initiative. AI-powered data centres and technology parks are critical to Malaysia’s ambitions in digital transformation and economic growth. By working together, we can create a sustainable and future-ready digital infrastructure that benefits industries, businesses, and the people of Kedah. This partnership is a strategic step towards developing an AI-driven economy that strengthens Malaysia’s global competitiveness.”
Managing Director of Systech Bhd, Dato’ Derrick Hooi stated, “This collaboration represents a major step forward in our mission to expand Malaysia’s AI capabilities. By leveraging our expertise in AI-driven solutions, alongside PKB’s strategic support and TWSB’s technical capabilities, we aim to establish a high-tech ecosystem that will drive innovation and create new opportunities in Kedah. This partnership aligns with our commitment to shaping Malaysia into a regional AI powerhouse.”
Managing Director of Tujuh Warisan Sdn Bhd, Eizaz Azhar, added, “AI is reshaping industries worldwide, and Malaysia, in particular Kedah, must structure an equilibrium between talent and infrastructure development to create real-world impact. As a specialist in mobilising state-driven transformation initiatives, TWSB is proud to be part of this collaboration to deliver long-lasting economic and technological progress to the state, as well as next-generation digital solutions, led by young local talent.”
The initiative will focus on AI application processing, dataset training, and the development of Malaysian-native AI tools, enabling businesses and industries to accelerate digital adoption. By establishing advanced AI-powered data centres and technology parks, Systech will enhance its service offerings, positioning itself as a leader in AI infrastructure and solutions. This strategic move aligns with Malaysia’s National Artificial Intelligence Office (“NAIO”) objectives to centralise AI resources, promote investment, and foster innovation, thereby contributing to the nation’s goal of becoming a regional AI development hub.
The signing ceremony, held at Pejabat PKB, Alor Setar, marks the beginning of a twelve-month negotiation period, during which the parties will finalise the framework and commercial terms of the collaboration. A definitive agreement is expected to follow, solidifying the long-term commitment to this transformative infrastructure project.
PKB envisions this collaboration as a catalyst for Kedah and Malaysia to emerge as a leader in AI-driven innovation, attracting global technology players while ensuring long-term economic resilience. The establishment of AI-powered infrastructure will provide a solid foundation for businesses to thrive, creating a dynamic ecosystem that empowers industries and enhances digital capabilities across various sectors.
As Systech continues to expand its presence in Internet of things, AI, cyber security and digital transformation, this collaboration underscores the company’s long-term vision to drive AI-powered innovation, strengthen Malaysia’s AI capabilities, and foster sustainable economic growth.
As at 5:00 P.M., 18 February 2025, the share price of Systech Bhd closed at RM 0.29, representing a market capitalisation of RM 186.90 million.
