AI Opens New Opportunities for SMEs Across Asia-Pacific
Dragon Media News Desk
On a production line at Seng Fong Holdings Berhad in Malaysia, a robotic arm now handles 35-kilogram rubber blocks with the help of artificial intelligence, 3D cameras and laser scanners. The technology is bringing significant changes to a rubber processing industry that has traditionally relied heavily on manual labor.
Developed by an AI company based in southern China’s Guangdong Province, the system can identify and handle rubber blocks of varying shapes as they emerge from drying ovens. According to the Malaysian company’s chairman, the technology has reduced labor costs by 20 to 30 percent while also improving management efficiency.
The case reflects a broader transformation taking place across the Asia-Pacific region. Artificial intelligence and other emerging technologies are creating new opportunities for small and medium-sized enterprises, while stronger regional connectivity and cooperation are helping businesses turn technological advances into new sources of growth.
The issue featured prominently at the 32nd Asia-Pacific Economic Cooperation Small and Medium Enterprises Ministerial Meeting held in Guangzhou, capital of Guangdong Province, on Friday. Representatives from APEC economies discussed how technological innovation could empower SMEs and support their further development.
SMEs form a major pillar of the Asia-Pacific economy. However, rapid industrial transformation, changes in global supply chains and the emergence of new technologies are creating both opportunities and challenges for smaller businesses.
Yang Qian, co-founder and chief operating officer of Shenzhen-based embodied AI startup X Square Robot, said AI-powered robotics are opening new pathways for the digital transformation of SMEs. She added that open-source technologies are reducing both costs and barriers to adoption, allowing more businesses to participate in technological innovation.
“What once required six months, expensive computing power and a professional team can now be done in three days with a workstation and an idea,” Yang said. “This gives SMEs, for the first time, a more level playing field with industry giants in innovation.”
Despite these opportunities, high digital transformation costs and shortages of skilled personnel remain major challenges for SMEs across the region, highlighting the need for deeper regional cooperation.
Kwon Jong-hyun, vice chairman of the Beijing Chapter of the World-OKTA, said China’s strengths lie in scale and speed, while the Republic of Korea has advantages in precision and reliability. He argued that combining such complementary capabilities could multiply the impact of cooperation rather than simply adding strengths together.
China has also introduced an action plan for 2026 to 2028 to support AI entrepreneurship among SMEs. According to the Ministry of Industry and Information Technology, the plan aims to foster more than 10,000 technology-based and innovative SMEs, more than 2,000 specialized “little giant” firms, as well as a number of fast-growing gazelle companies and unicorns.
Alongside its domestic efforts, China is seeking to expand international cooperation in artificial intelligence. It has announced plans to provide 5,000 AI training and seminar opportunities for developing countries over the next five years.
China is also advancing the establishment of AI application cooperation centers with ASEAN countries. Overseas branches in Laos, Malaysia and Vietnam are already operating, promoting cross-border cooperation in large AI models, the data industry and smart agriculture.
Chinese Vice Premier Zhang Guoqing said at the opening ceremony of the ministerial meeting that China is ready to work with all parties to help more SMEs grow and prosper.
He said China is strengthening policy support for SMEs and expanding practical cooperation with APEC economies to jointly promote their high-quality development.
