KUALA LUMPUR: MBSB Bhd
’s unit Malaysian Industrial Development Finance Bhd (MIDF) has approved its first financing facility under the World Intellectual Property Organization (WIPO)-MIDF Intellectual Property (IP)-Backed Financing Pilot Programme, establishing IP as a recognised form of collateral and security interest.
In a statement today, MBSB said the inaugural recipient, a Malaysian small and medium enterprise (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,” it said.
MBSB said the pilot programme, initiated following a memorandum of understanding (MoU) signed between MIDF and WIPO on Sept 24, 2025, aimed to develop robust frameworks for integrating intangible assets into credit assessments.
It said the initiative specifically targets innovation-driven, asset-light SMEs that often struggle with traditional collateral requirements.
MBSB said the programme was further bolstered by a dedicated RM10 million fund from SME Corporation Malaysia to support IP-backed financing, while Adastra Intellectual Property Sdn Bhd and Inngot Ltd (UK) conducted the valuation and commercial risk analysis, as well as the transfer of knowledge and expertise.
Commenting on the milestone, MIDF chief executive officer Azizi Mustafa said this marks a turning point in the 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,” he said. - Bernama
