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Malaysia seeks to ease financing barriers for startups and SMEs with valuable IP

15 October 2026

Malaysia seeks to ease financing barriers for startups and SMEs with valuable IP

Malaysia’s Ministry of Domestic Trade and Cost of Living has launched a fund with an initial allocation of RM1 million (US$244,900) to help local companies cover the cost of professional intellectual property valuation services.

Minister Armizan Mohd Ali said the fund was one of two initiatives introduced by the ministry through the Intellectual Property Corporation of Malaysia (MyIPO).

The fund is particularly aimed at technology-based startups and small and medium-sized enterprises (SMEs) that own valuable IP assets but struggle to secure financing due to a lack of traditional physical collateral, he said in a statement.

The valuation fund is distinct from an earlier RM10 million (US$2.4 million) IP-backed financing pilot developed by Malaysian Industrial Development Finance Berhad (MIDF) and the World Intellectual Property Organization (WIPO), with funding from SME Corp Malaysia. The pilot allows businesses to pledge IP as collateral for financing, while the new fund helps companies cover professional valuation costs.

The second initiative is Malaysia’s first IP valuation module, which is designed to establish more consistent valuation standards and support the development of accredited local IP valuers.

“Together, the two initiatives will help build a more structured IP-backed financing ecosystem,” Armizan said. “The fund will help companies access valuation services, while the module will strengthen the capacity, expertise and standards needed to carry out valuations.”

Both initiatives were launched alongside the National Intellectual Property Commercialization Conference and Exhibition (IP Confex) 2026 at the World Trade Centre Kuala Lumpur.

Held on October 6-7, IP Confex 2026 brought together more than 500 participants, including industry representatives, financial institutions, researchers, innovators and government agencies.

The event also saw MyIPO exchange memoranda of understanding with six organizations: the World Intellectual Property Organization, Multimedia University, the Malaysia External Trade Development Corporation, the National Entrepreneurship Institute, Perbadanan Nasional Bhd and the Malaysia Motorcycle and Scooter Assemblers and Distributors Association.

Armizan said the partnerships would expand MyIPO’s network of international and domestic organizations, educational institutions, trade and entrepreneurship development agencies, and industry players.

They would also facilitate knowledge-sharing, build professional capacity and support efforts to expand the commercialization of Malaysian IP, he added.

The two initiatives and the new partnerships underscore the ministry’s commitment to positioning intellectual property as a driver of commercialization, financing and economic growth, Armizan said.

- Asia IP


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