Malaysia is committing 200 million ringgit (US$65.4 million) for its intellectual property (IP) financing initiative, which is meant to make it easier for small and midsize businesses (SMBs) to get capital by putting up their patents as collaterals.
According to Bernama's report Tuesday, Ministry of Finance Deputy Secretary-General for Policy Datuk Mat Noor Nawi said the IP financing scheme will be offered through Malaysian Debt Ventures and the 200 million ringgit is just the start. He added the government will also offer a 2 percent interest rate subsidy and a 50 percent guarantee through Credit Guarantee Corp Malaysia.
"This is one way for the government to assist SMBs in increasing opportunities to bring them to the next commercialization level," the minister added.
Datuk Azizan Mohamad Sidin, director-general of the Intellectual Property Corporation of Malaysia (MyIPO), added IP rights will become more important in the global economy and the country must rise to the challenge of making the nation a competitive force in emerging IP markets. This is why the government has introduced the IP financing scheme, as well as look to implement a national IP valuation model, he noted.
"We are steadfast in helping SMBs develop their IPs into a source of new wealth creation. They have the option of using the IP rights to improve their competitive edge, generate revenue and improve access to financing," he added.
The Multimedia Development Corporation (MDec) had, although it's not clear whether the valuation model has been announced and implemented.