(Yicai Global) Dec. 15 -- A United Electronics Co. [SHE:002642] division will work with a Malaysian partner to plan smart city construction in Kualu Lumpur.

A wholly owned-subsidiary of the Beijing-based data service provider signed a memorandum of understanding on a deal with Malaysia's Safe City Sdn. Bhd. yesterday, the listed firm said in a statement the same day.

The pair intends to form an alliance to propose a top-level design based on the Malaysian government's requirements for smart city construction in Kuala Lumpur and Putrajaya, and work together to oversee the project, the announcement said.

Safe City is dedicated to advancing smart cities in the country and has local industry and government resources and related service teams there. United Electronics will design and develop the Malaysian capital's smart city system, and offer technical support and equipment as necessary during construction, the firm said.

The partnership is another of the company's important moves in line with China's Belt and Road Initiative, the statement added.

Often compared with the ancient Silk Road, the One Belt, One Road initiative was proposed by Chinese President Xi Jinping in 2013. It is a grand 30- to 40-year plan for a vast infrastructure and trade route boasting a major network of railroads, highways, ports and pipelines embracing the continents of Asia, Europe and Africa. Singapore, with its highly developed economy and advanced technological infrastructure, sits at a key strategic point.