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 AI-driven solution, developed by a 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 points to a broader shift taking place across the Asia-Pacific, where AI is creating new opportunities for SMEs to innovate while deeper regional connectivity is helping them turn technological advances into new sources of growth.
This trend was evident at the 32nd Asia-Pacific Economic Cooperation (APEC) Small and Medium Enterprises Ministerial Meeting, held in Guangzhou, Guangdong's capital. Officials from APEC economies gathered to explore how technological innovation can empower SMEs and drive their further development. SMEs are a major pillar of the regional economy, and as technological and industrial transformation accelerates, AI and other emerging technologies are creating both new opportunities and challenges for SMEs across the Asia-Pacific.
Yang Qian, co-founder and chief operating officer of Shenzhen-based embodied AI startup X Square Robot, highlighted the transformative potential of AI-powered robotics for SMEs at a parallel forum held alongside the ministerial meeting. She noted that what once required six months, costly computing power, and a professional team can now be done in three days with a workstation and an idea. This gives SMEs, for the first time, a more level playing field with industry giants in innovation.
Despite these advancements, SMEs across the region still 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 importance of collaboration, citing embodied intelligence as an example where China's strengths in scale and speed complement the Republic of Korea's strengths in precision and reliability.
China's experience in supporting SMEs' digital transformation offers a notable example. The latest initiative came when the Ministry of Industry and Information Technology released an action plan to support AI entrepreneurship among SMEs for 2026-2028. The plan aims to foster more than 10,000 technology-based and innovative SMEs, over 2,000 "little giant" firms, as well as gazelle companies and unicorns.
Beyond domestic efforts, China is also looking to extend 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. Additionally, it is advancing the establishment of AI application cooperation centers with ASEAN countries, with operational branches in Laos, Malaysia, and Vietnam. These centers promote cross-border cooperation in large models, the data industry, and smart agriculture, bringing Chinese solutions together with local partners.
Vice Premier Zhang Guoqing, in a speech at the opening ceremony of the meeting, stated that China is ready to work with all parties to help more SMEs thrive and grow.