GUANGZHOU, Sept. 4 (Xinhua) -- On a production line at Seng Fong Holdings Berhad in Malaysia, a robotic arm grips a 35-kilogram 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.
Developed by an AI company in China's southern Guangdong Province, the solution 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, according to the company's chairman.
The case points to a broader shift taking place across the Asia-Pacific. AI is creating new opportunities for SMEs to innovate, while deeper regional connectivity is helping them turn technological advances into new sources of growth.
That trend was reflected at the 32nd Asia-Pacific Economic Cooperation (APEC) Small and Medium Enterprises Ministerial Meeting, held on Friday in Guangzhou, capital of Guangdong, as 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. As technological and industrial transformation accelerates and global supply chains undergo profound changes, AI and other emerging technologies are creating both new opportunities and new challenges for SMEs across the Asia-Pacific.
AI-powered robotics are opening up new pathways for the digital transformation of SMEs, while open-source technologies are further lowering the barriers to technology access and application, enabling more businesses to participate in technological innovation, said Yang Qian, co-founder and chief operating officer of the Shenzhen-based embodied AI startup X Square Robot, at a parallel forum held alongside the ministerial meeting.
"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," she said. "This gives SMEs, for the first time, a more level playing field with industry giants in innovation."
Yet SMEs across the region still face challenges, such as high digital transformation costs and talent shortages, highlighting the need for greater regional cooperation.
Kwon Jong-hyun, vice chairman of the Beijing Chapter of the World-OKTA, cited embodied intelligence as an example, saying China's strengths lie in scale and speed, while those of the Republic of Korea lie in precision and reliability.
Such cooperation, he said, is not simply about adding strengths together, but about multiplying their impact by combining complementary capabilities.
China's experience in supporting SMEs' digital transformation offers one example. The latest move came on Friday, 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, more than 2,000 "little giant" firms, as well as a number of gazelle companies and unicorns.
Beyond domestic efforts, China is also seeking to extend AI cooperation through technology sharing and practical collaboration. It has announced that it will provide 5,000 opportunities for AI training and seminars for developing countries over the next five years.
It is also advancing the establishment of AI application cooperation centers with ASEAN countries, with overseas branches in Laos, Malaysia and Vietnam already operational. These centers promote cross-border cooperation in large models, the data industry, and smart agriculture, bringing Chinese solutions together with local partners.
China stands ready to work with all parties to help more SMEs thrive and grow, Vice Premier Zhang Guoqing said in a speech delivered at the opening ceremony of the meeting.
The country is enhancing its policy support for SMEs and strengthening practical cooperation with APEC economies to jointly boost the high-quality development of SMEs, Zhang added.
