Malaysia Wraps Up WIPO's First IP Finance Pilot With RM10 Million Lent Against Brands
Malaysia has completed the first intellectual property finance pilot run by the World Intellectual Property Organization (WIPO). At a closing event on 2 November 2026, the state development financier Malaysian Industrial Development Finance Berhad (MIDF) confirmed it had approved RM10 million in loans to two Malaysian brands, using their IP as collateral.
The borrowers were a shoe and handbag label and a yoghurt producer. Both had their intellectual property assessed and valued by independent specialists, Adastra IP and Inngot, before MIDF made its credit decision. The Intellectual Property Corporation of Malaysia (MyIPO) then recorded MIDF's security interest against the IP, in a way similar to registering a charge on land. SME Corp Malaysia provided the RM10 million for the scheme, which began in September 2025.
What the partners learned
WIPO's summary says the transactions forced the partners to work through practical issues: governance, the legal framework for taking security over IP, valuation, checking who actually owns the rights, and keeping track of intangible assets during the life of a loan. Companies also varied widely in how well they managed their IP, which affected how ready they were for this kind of finance.
WIPO Assistant Director General Andrew Staines said the pilot had built hands-on experience and a framework that can now be improved and scaled. MIDF chief executive Azizi Mustafa called the use of IP as collateral a milestone for financing in Malaysia.
Valuation support for smaller firms
Separately, MyIPO set up an IP Valuation Financing Fund worth RM1 million in October, meant to pay valuation costs for 50 or more SMEs and start-ups. Application details had not been published as of early November.
Relevance for Indonesia
Indonesia has allowed IP to serve as loan collateral since Government Regulation 24 of 2022, but bank lending against IP remains rare, and valuation is often cited as the obstacle. Malaysia's experience shows the ingredients that made deals possible: registered rights, an independent valuation, a public record of the security interest and a lender willing to test the model. For Indonesian brand owners, the first step is the same in both countries: register the trademark properly and keep the records that prove its value.
Sources
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