Alibaba is set to bring its "smart city" technology overseas for the first time, after sealing a deal to apply it to cities across Malaysia as the country looks to boost its digital economy.
The capital Kuala Lumpar will be first to apply the Malaysia City Brain, which will initially monitor traffic but could go on to inform authorities on how to better manage energy, security and public safety.
Alibaba Cloud, a subsidiary of the Alibaba Group, will work with the Malaysia Digital Economy Corporation to implement the technology, which relies on big data, cloud computing and artificial intelligence (AI) to provide up-to-date information on how to make cities function more efficiently.
For example, the City Brain could pinpoint routes for emergency services through urban areas, and use AI to manage traffic in and around the area. The technology can also watch out for patterns among commuters using public transport, and increase or reduce buses accordingly.
Six cities including east China’s Hangzhou and Suzhou are already using the system to better inform authorities on how best to manage urban resources.
According to Wang Jian, a president at Alibaba and the man in charge of the City Brain, Hangzhou has already seen urban management improved by the technology since it was launched in 2016.
Travel times on highways in the city were reduced overall by 10 percent, while bus routes saw passenger numbers increase by as much as 17 percent after the City Brain pointed out areas of improvement.
According to a news release by Alibaba, another advantage of the City Brain is that it is an open platform, opening the door for students and researchers to use and develop the technology themselves.
Malaysia is one of the most urbanized countries in Asia, and Kuala Lumpur suffers from serious traffic congestion. According to the World Bank, residents in the capital spend 500 million hours every year stuck in traffic.
Growing discontent over rising living costs and corruption means the pressure is on Malaysian Prime Minister Najib Razak, ahead of elections in the spring.
Najib Razak, Malaysia's prime minister, speaks during the Invest Malaysia conference in Kuala Lumpur, Malaysia, January 23, 2018. /VCG Photo
Najib Razak, Malaysia's prime minister, speaks during the Invest Malaysia conference in Kuala Lumpur, Malaysia, January 23, 2018. /VCG Photo
This is not the first cooperation agreement between Malaysia and Alibaba. In October last year, Alibaba Cloud launched its first overseas public big data cloud in the country, while Alibaba’s logistics arm Cainiao has a joint venture with Malaysia Airport Holdings.