WIPO and Malaysia’s MIDF release report on successful Malaysian IP-backed finance pilot project

The World Intellectual Property Organisation (WIPO) and the Malaysian Industrial Development Finance Berhad (MIDF) have released a report on the first-ever WIPO-supported IP-backed finance pilot project, which was originally launched in September 2025.

The WIPO-MIDF IP Finance Pilot Project Closure Report was released at a closing event yesterday (November 2, 2025) in Petaling Jaya, Malaysia. It provides details of MIDF’s first two IP-backed financing facilities, totalling 10 million Malaysian Ringgit (£1.8m), which used IP as collateral alongside conventional collateral to support businesses in food production and fashion and accessories.

The WIPO-MIDF IP Finance Pilot Project Closure Report can be downloaded from WIPO here.

The purpose of the WIPO/MIDF IP Finance Pilot Project was to test an end-to-end framework for incorporating IP into financing decisions, covering IP assessment, valuation, financing approval and post-disbursement monitoring. It demonstrated that IP-inclusive lending can be implemented within MIDF’s existing credit processes, supported by sound governance and cross-sector collaboration.

Azizi Mustafa, CEO of MIDF, said yesterday: “The recognition of IP as collateral marks a significant milestone in Malaysia’s financing landscape, creating new opportunities for businesses to unlock the value of their intangible assets and access the funding required to accelerate growth, innovation and expansion.”

Andrew Staines, Assistant Director General, WIPO, added: “We have built practical experience, strengthened institutional capacity and created a framework that can now be refined and scaled.”

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

Technical expertise was provided by independent specialists Adastra Intellectual Property Sdn Bhd and Inngot Ltd (UK), which jointly conducted the valuation and commercial risk analysis, as well as transfer of knowledge and expertise to other partners.

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.

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