KUALA LUMPUR (April 11): Digital services provider MyEG Services Bhd (KL:MYEG) is working with China’s Guangxi state-owned enterprise to develop a national artificial intelligence (AI) model — a foundation for various AI applications in the country.

According to MyEG, the company and Guangxi BeiTou IT Innovation Technology Investment Group Co Ltd will establish an AI Innovation Cooperation Centre in Malaysia.

The centre, which will be run by the two companies’ joint venture (JV), is focused on developing AI infrastructure, creating Malaysia’s foundational AI model, supporting research and development, and driving market growth.

The JV’s ownership will be based on each party’s capital contribution, with final equity shares to be decided later. The agreement will last five years, with a possible renewal if both sides agree.

Under the agreement, BeiTou IT will primarily contribute technological expertise, AI talent, and access to global market channels, while MyEG will provide policy facilitation, government liaison, local data resources, and market development capabilities.

The centre’s first major service will focus on the mutual recognition of digital identifications between Malaysia and China, starting with Guangxi province.

“The service enables citizens from Malaysia to use their MyDigital ID for various identity verification requirements in Guangxi province, especially for KYC (know-your-customer) requirements at financial institutions and various tourist attractions,” MyEG said. At the same time, the digital ID of Chinese nationals will be similarly accepted for identity verification in Malaysia, it added.  

Revenue streams for the JV will include AI data services, computing power leases, customised enterprise AI solutions, government procurement projects, and cross-border data transactions, the company said.

The agreement was officially exchanged on Thursday in the presence of Guangxi Governor Lan Tianli and Malaysia’s Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

On the same day, the Guangxi provincial government has allocated 10 billion yuan (RM6.08 billion) through an investment fund to accelerate AI and digital economy projects under the China-Asean initiative.

"As the leading digital technology group in Guangxi, we are proud to act as the bridge connecting China AI resources such as open source LLMs, AI applications and AI talents, and et cetera, with AI use cases across public private sectors, industries and academics in Malaysia and Asean,” said Beitou IT group chairman Lai Shuiping.

MyEG managing director TS Wong added that the convergence of blockchain, robotics and AI technologies represents the next wave of innovation, and that the group is well-positioned to deliver cutting-edge solutions.

Its share price was up six sen or 7.19% to 89.5 sen at the time of writing on Friday, valuing the group at RM6.9 billion. Year-to-date it is down 6.8%.

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