Malaysia Introduces RM1 Million IP Valuation Financing Fund for SMEs and Start-ups

1. 1Overview
2. 2How does it matter to businesses?
   1. 2.1RM1 Million IP Valuation Financing Fund
   2. 2.2RM10 Million IP-Based Financing Pilot Project
3. 3Matters awaiting further clarification
4. 4References

Overview

On 7 October 2026, the Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali, announced a RM1 million Intellectual Property (IP) Valuation Financing Fund spearheaded by the Intellectual Property Corporation of Malaysia (MyIPO).

The fund aims to assist at least 50 small and medium enterprises (SMEs) and start-ups by covering the cost of professional IP valuation services.

The initiative seeks to help businesses with valuable intellectual property but limited access to conventional financing have their intangible assets recognised within the banking sector's formal valuation system.

How does it matter to businesses?

RM1 Million IP Valuation Financing Fund

The fund is intended to help eligible businesses meet the initial cost of obtaining professional IP valuations.

This may be particularly relevant to technology-based businesses whose commercial value lies substantially in intangible assets rather than conventional collateral such as land or buildings.

RM10 Million IP-Based Financing Pilot Project

The Minister also referred to an earlier RM10 million IP-based financing pilot project developed in collaboration with Malaysian Industrial Development Finance Berhad (MIDF) and the World Intellectual Property Organisation (WIPO).

Unlike the valuation fund, this initiative allows companies to pledge intellectual property directly as collateral for financing.

In May 2026, MBSB Bhd’s unit, Malaysian Industrial Development Finance Bhd (MIDF), approved its first financing facility under the project.

Matters awaiting further clarification

As at the date of this alert, the announcement reported by Bernama and published by Malay Mail does not specify the complete application requirements for the RM1 million fund.

Businesses should await further official guidance concerning:

1. Eligibility criteria for SMEs and start-ups.

2. The types of intellectual property eligible for valuation funding.

3. The extent of financial assistance available to each applicant.

4. Requirements concerning accredited or approved valuers.

5. The application procedure and supporting documentation.

Businesses should verify these requirements through official MyIPO and KPDN announcements before making financial or operational decisions based on the initiatives.

References

Malay Mail, 7 October 2026: Armizan: RM1m IP fund could help 50 Malaysian SMEs and start-ups access financing (https://www.malaymail.com/amp/news/money/2026/10/07/armizan-rm1m-ip-fund-could-help-50-malaysian-smes-and-start-ups-access-financing/238110)

The Star (11 May 2026). “MBSB's unit approves first intellectual property-backed financial facility.” (https://www.thestar.com.my/business/business-news/2026/05/11/mbsb039s-unit-approves-first-intellectual-property-backed-financial-facility)