Malaysia launched a RM1 million valuation fund on Wednesday. The money will help at least 50 small businesses and startups secure bank loans using intellectual property as collateral.
The Intellectual Property Corporation of Malaysia will manage the pilot program. It covers upfront valuation costs for patents, trademarks, and proprietary technology required by commercial lenders.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali introduced the facility at the National Intellectual Property Conference and Exhibition in Kuala Lumpur. Tech startups, software developers, and brand creators face frequent loan rejections. Their balance sheets carry intangible property rather than physical land or factory buildings.
Appraisal fees typically run into thousands of ringgit per filing. By absorbing these costs, the ministry aims to create a pipeline of bank-ready assets. The intervention ties directly into an earlier RM10 million pilot debt scheme established with Malaysian Industrial Development Finance and the World Intellectual Property Organisation.
“Active participation by commercial banks in adopting this new financial instrument is critical to creating opportunities for more local entrepreneurs. The RM10 million pilot project allows IP to be pledged directly as collateral, providing faster access to financing,” he said.
Commercial banks across Southeast Asia remain cautious lenders. Most risk models penalize unlisted tech assets. Secondary markets for liquidated software code and regional brand registrations lack clear pricing data.
To address that structural gap, the government rolled out an accredited training curriculum called the IP Valuation Module. Certified domestic valuers will standardize asset assessments. Over time, that should lower private appraisal fees and reduce credit committee discounts on proprietary commercial assets.
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