KUALA LUMPUR (May 11): Malaysian Industrial Development Finance Bhd (MIDF) has approved its first financing facility under the WIPO–MIDF Intellectual Property (IP)-Backed Financing Pilot Programme, marking a milestone in recognising intellectual property as collateral and security interest in Malaysia’s financing landscape.
MIDF said the inaugural recipient, a Malaysian small and medium-sized enterprise (SME), secured the financing facility by leveraging its intellectual property assets as a key component of the credit evaluation and security package. The transaction used specialised methodologies for IP identification, valuation and risk assessment developed under the pilot framework.
MIDF, however, did not disclose the identity of the recipient SME, nor the size of the financing facility.
“By unlocking the value of intangible assets, MIDF is empowering innovation-driven SMEs to translate their ingenuity into scalable growth. We are proud to lead the way in building a more inclusive ecosystem for Malaysia’s asset-light innovators,” said MIDF chief executive officer Azizi Mustafa in a statement on Monday.
The pilot programme was established following a memorandum of understanding signed between MIDF and the World Intellectual Property Organization (WIPO) in September last year, to develop frameworks for integrating intangible assets into credit assessments.
The initiative is aimed at innovation-driven and asset-light SMEs that often struggle with traditional collateral requirements.
The programme is backed by a dedicated RM10 million fund from SME Corporation Malaysia, specially allocated to support IP-backed financing.
WIPO assistant director general Marco Aleman said the collaboration with MIDF demonstrates what becomes possible when the right partners come together to move IP finance forward.
“This is what WIPO’s Action Plan is built on. It is about concrete action, equipping innovators and lenders on the ground with the tools and confidence to unlock the real value of intellectual property,” Aleman added.
MIDF said technical expertise was provided by independent specialists Adastra Intellectual Property Sdn Bhd and Inngot Ltd (UK), who conducted the valuation and commercial risk analysis, as well as transfer of knowledge and expertise.
The Intellectual Property Corporation of Malaysia (MyIPO) also played a critical role in ensuring that the legal frameworks for registering security interests over IP assets are seamless and enforceable, MIDF added.
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