Zchwantech Group partners Magna AI to support Malaysia’s Sovereign AI Cloud, digital transformation

ZCHWANTECH Group, a home-grown technology solutions outfit, has sealed a strategic collaboration with Magna AI, a global integrated value-chain leader in sovereign AI transformation established through a partnership between Trend Micro and Wistron.

The collaboration formalised through the inking of a memorandum of understanding (MOU) entails both parties jointly designing and developing Sovereign AI Cloud-ready artificial intelligence (AI) infrastructure, advanced AI applications and AI security capabilities in Malaysia.

Under the MOU, Zchwantech Group and Magna AI will collaborate on the development of a Sovereign AI Cloud framework in Malaysia, integrating data pipelines, model pipelines, AI operations and high-performance computing environments to support enterprise- and national-level AI workloads.

Communications Minister Datuk Fahmi Fadzil witnessed the Zchwantech Group-Magna AI MOU

The collaboration also includes the co-development of AI applications tailored to Malaysia’s priority industries, incorporating predictive intelligence, automation, and domain-specific AI models to enhance operational efficiency and digital competitiveness.

In addition, the partnership establishes a framework to address Malaysia’s growing need for secure, national-scale AI infrastructure.

Under the MOU, both parties will collaborate on the development of dedicated AI data centres designed to deliver the high-performance computing capacity required to support Malaysia’s digital transformation agenda.

Zchwantech Cybersecurity Sdn Bhd chairman Tengku Datuk Putra Tengku Azman Shah and Zchwantech Group chairman Datuk Seow Gim Shen said Zchwantech’s growth has been built on relevance and execution with the latest collaboration representing a strategic response to the evolving cyber risk landscape.

“As digital transformation accelerates, traditional security approaches alone are no longer sufficient,” they enthused.

“By integrating cybersecurity with advanced AI, this collaboration equips organisations with proactive and adaptive capabilities to safeguard critical systems while continuing to drive innovation.”

Zchwantech Cybersecurity Sdn Bhd chairman Tengku Datuk Putra Tengku Azman Shah

The collaboration combines Zchwantech Group’s extensive expertise in cybersecurity and digital integration with Magna AI’s end-to-end AI transformation capabilities, including model integrity and data governance, thus setting a new benchmark for secure digital adoption and effective risk mitigation.

“Embedding security within digital and AI strategies is no longer optional; it is fundamental. This partnership strengthens our ability to deliver solutions that are resilient, scalable and aligned with real-world operational demands,” stressed Zchwantech Sdn Bhd’s executive director Chan Chau Loong.

Zchwantech Sdn Bhd’s executive director Chan Chau Loong
Magna AI’s CEO Dr Moataz BinAli

In the words of Magna AI’s CEO Dr Moataz BinAli, Malaysia stands at a pivotal inflection point with a clear opportunity to lead the region in sovereign AI capabilities.

“Our partnership with Zchwantech brings together advanced AI engineering, cybersecurity expertise and a shared vision for national-scale transformation,” he envisages.

The MOU builds on extensive joint efforts between Magna AI and Zchwantech, with collaboration from WiAdvance to define a framework that balances innovation, sovereignty and security.

The parties will now proceed with detailed technical scoping, architectural planning and stakeholder engagement for the Sarawak AI Data Centre while advancing broader initiatives under the Malaysia Sovereign AI Cloud programme.

In parallel, they will explore opportunities for the development of sovereign-ready AI infrastructure in Selangor.

Malaysia’s digital economy and AI ecosystem continue to expand at pace with 2.4 million businesses already adopting AI and a 35% year-on-year (yoy) growth in AI adoption recorded in 2025.

Concurrently, AI-enabled cyber threats are escalating with nearly half of organisations reporting incidents involving AI-driven attacks. This underscores the urgent need for solutions that deliver innovation and security in equal measure. – Feb 6, 2026

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