Guangzhou: On a production line at Seng Fong Holdings Berhad in Malaysia, a robotic arm grips a 35-kilogramme block of rubber, with 3D cameras, laser scanners, and AI algorithms serving as its "eyes" and "brain." The setup is designed to tackle a longstanding challenge in the traditionally labor-intensive rubber processing industry. Rubber blocks coming out of drying ovens vary in shape, making them difficult for conventional robotic systems to handle.
According to Nam News Network, this innovative solution, developed by an AI company in China's southern Guangdong Province, has enabled the Malaysian rubber processor to automate more of the handling process, cutting labor costs by 20 to 30 percent while improving management efficiency, as stated by the company's chairman. This case exemplifies a broader shift occurring across the Asia-Pacific region, where AI is opening new opportunities for SMEs to innovate. Deeper regional connectivity is aiding these businesses in transforming technological advances into new growth avenues.
This trend was evident at the 32nd Asia-Pacific Economic Cooperation (APEC) Small and Medium Enterprises Ministerial Meeting held in Guangzhou, where officials from APEC economies gathered to discuss the role of technological innovation in empowering SMEs and driving their development. SMEs, being a major pillar of the regional economy, are experiencing both new opportunities and challenges as technological and industrial transformations accelerate and global supply chains undergo significant changes.
AI-powered robotics are paving new paths for the digital transformation of SMEs. Open-source technologies are further lowering barriers to technology access and application, enabling more businesses to engage in technological innovation, as highlighted by Yang Qian, co-founder and COO of X Square Robot, a Shenzhen-based embodied AI startup, during a forum held alongside the ministerial meeting.
Despite these advancements, SMEs across the region face challenges such as high digital transformation costs and talent shortages, underscoring the need for greater regional cooperation. Kwon Jong-hyun, vice chairman of the Beijing Chapter of the World-OKTA, emphasized the complementary strengths of China and the Republic of Korea in areas like embodied intelligence, suggesting that cooperation is not merely about adding strengths but amplifying their impact by combining capabilities.
China's recent initiatives to support SMEs in digital transformation offer an illustrative example. The Ministry of Industry and Information Technology released an action plan to support AI entrepreneurship among SMEs from 2026 to 2028, aiming to foster over 10,000 technology-based and innovative SMEs, more than 2,000 "little giant" firms, as well as numerous gazelle companies and unicorns.
Beyond domestic efforts, China is actively seeking to expand AI cooperation through technology sharing and practical collaboration. It has announced plans to provide 5,000 opportunities for AI training and seminars for developing countries over the next five years and is advancing the establishment of AI application cooperation centers with ASEAN countries, with operational branches in Laos, Malaysia, and Vietnam.
In his speech at the opening ceremony of the meeting, Vice Premier Zhang Guoqing affirmed China's readiness to collaborate with all parties to help more SMEs thrive and grow.