Malaysia’s MIDF bank approves first IP-backed loan under Malaysia-WIPO IP finance pilot scheme, supported by Adastra IP and Inngot

Photo by Mohd Jon Ramlan on Unsplash

Malaysian Industrial Development Finance Berhad (MIDF) has approved its first financing facility under the WIPO–MIDF Intellectual Property (IP)-Backed Financing Pilot Program, established in September 2025 in partnership with the World Intellectual Property Organization (WIPO).

The pilot program, initiated following a Memorandum of Understanding (MoU) signed between MIDF and WIPO on 24 September 2025, aims to develop robust frameworks for integrating intangible assets into credit assessments. The initiative specifically targets innovation-driven, asset-light SMEs that often struggle with traditional collateral requirements.

Technical expertise is being 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 first recipient of an IP-backed loan, a Malaysian SME, secured the facility by leveraging its IP assets as a core component of the credit evaluation and security package. The transaction utilised specialised methodologies for IP identification, valuation, and risk assessment developed under the pilot framework.

The program is supported by a dedicated RM10 million fund from SME Corporation Malaysia (SME Corp), specifically allocated to support IP-backed financing. The Intellectual Property Corporation of Malaysia (MyIPO) also played a critical role in ensuring the legal frameworks for registering security interests over IP assets are seamless and enforceable.

With additional applications currently under review, this first approval serves as a blueprint for the future of innovation-based lending in Malaysia.

Azizi Mustafa, Chief Executive Officer of MIDF said,

“This milestone marks a turning point in our financial landscape, proving that intellectual property is a viable and powerful form of collateral. 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.”

Mr. Marco Aleman, Assistant Director General of the World Intellectual Property Organization (WIPO) said,

“Our 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.”