Left: Ts. Ng Kwang Ming, CEO of Digital Penang, and YAMANAKA Kenjiro of Yachiyo Engineering exchanging the MoU.
Witnesses (from left): Dato Ir. Rajendran P. Anthony, Mayor of Penang Island City Council; YB Tuan Zairil Khir Johari; and Mr. YAZAMA Hideyuki, Deputy Consul-General of Japan in Penang
Right: YB Tuan Zairil Khir Johari, Penang State Executive Councillor for Infrastructure, Transport and Digital, delivering his remarks

・Background of the MoU・

Amid rapid urbanisation, Penang faces growing needs to address urban flooding, rising water demand and traffic congestion. From April 2023 to October 2025, Yachiyo Engineering took part, in public-private partnership with Kawasaki City, Japan, in the JICA Partnership Program project "Water Resources Management Support Project for Building a Sustainable, Resource-Circulating Society in Penang, Malaysia". Through the project, Yachiyo Engineering supported the state in the field of water resources management, including jointly preparing with the state a draft master plan for water environment conservation.
At the same time, as Malaysia transitions toward graduation from ODA, the real-world deployment of technologies is increasingly expected to take place through private-sector business. To build on the project's outcomes, a continuing framework is needed to carry its results into commercialisation and to sustain the connections built between Japanese companies and state agencies beyond the project period. Sharing this understanding, Penang and Yachiyo Engineering concluded the MoU as a continuing framework that broadens the scope from water resources management to next-generation social infrastructure as a whole.

・Overview of the MoU and Outlook・

The MoU sets out four focus areas:

• Water Systems & Environmental Protection
• Smart Urban Operations & Mobility
• Green Transformation & Energy Resilience
• Structural & Community Resilience

Starting from the operational challenges of Penang's public sector, Digital Penang and Yachiyo Engineering will co-develop, co-validate and co-deploy solutions with Japanese companies, with the participation of local Penang industries and technology startups. Technologies validated in Penang will be scaled across the state, enhancing public service delivery and the daily lives of the people of Penang.
Going forward, the partners aim to structure joint demonstration projects in the four focus areas. Yachiyo Engineering will contribute to the realisation of the Penang2030 vision and work to develop a model for extending solutions validated in Penang to other ASEAN countries.

・Signing Ceremony・

The signing ceremony was held at Bilik Jade, KOMTAR, George Town, Penang, Malaysia. The MoU was signed by Ts. Ng Kwang Ming, Chief Executive Officer of Digital Penang, and YAMANAKA Kenjiro, Board Member, Executive Officer, and Director General of the Business Development Division, Yachiyo Engineering. The signing was witnessed by YB Tuan Zairil Khir Johari, Penang State Executive Councillor for Infrastructure, Transport and Digital, and Mr. YAZAMA Hideyuki, Deputy Consul-General of the Consulate-General of Japan in Penang. The ceremony was also attended by Dato Ir. Rajendran P. Anthony, Mayor of Penang Island City Council (MBPP), as well as heads of departments and technical directors from across Penang's public sector.
Witnessing the exchange, YB Tuan Zairil Khir Johari said: "This partnership with Yachiyo Engineering provides our public sector with a forward-looking platform to solve chronic community challenges. By positioning Penang as a real-world Living Lab, we are ensuring our public agencies adopt the highest engineering standards to deliver lasting social impact across all communities."
YAMANAKA Kenjiro of Yachiyo Engineering said: "For more than 60 years, we have helped develop social infrastructure in more than 150 countries. This Memorandum builds on the trust we have nurtured with Penang through the JICA Partnership Program. Together with Digital Penang, we will build an environment where outstanding technologies are refined here in Penang and take flight to the world."
Two Japanese startups also joined the ceremony and presented their technologies to officials from Penang state agencies: DataLabs Inc. (Head Office: Chuo-ku, Tokyo; CEO: TAJIRI Daisuke), which is transforming the construction industry through 3D data, and TerraInsight Inc. (Head Office: Kyoto; Representative: IMAI Yoshihito), a Kyoto University-born deep-tech startup providing integrated water resources management services.

・About Digital Penang・

Digital Penang Sdn. Bhd. is a Penang State Government-owned company established to accelerate digital transformation, promote digital adoption and strengthen the state's digital economy in support of the Penang2030 vision.

・Related Releases・

Yachiyo Engineering launches a water resources management project in Penang, Malaysia, in public-private partnership with Kawasaki City (June 2023, in Japanese)