Malaysia Launches New Initiative: Intellectual Property Can Now Be Used as Loan Collateral
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The Malaysian government recently introduced an innovative measure to help local technology companies secure financing. Through this initiative, small and medium-sized enterprises (SMEs) and start-ups can now use their intellectual property (IP) as collateral when applying for business loans.
This measure aims to assist entrepreneurs who possess creative ideas and high technology but lack physical assets such as buildings or land. By treating intellectual property as a valuable asset, these companies have a greater opportunity to obtain capital to expand their businesses to a higher level.
As a start, the government has launched a RM1 million valuation fund to help companies determine the value of their intellectual property. Additionally, a RM10 million financing pilot project has also been introduced to test the effectiveness of this new system in the local market.
This initiative is expected to stimulate digital economic growth in Malaysia by encouraging more innovation. The government hopes this facility will provide confidence to investors and financial institutions to support technology-based businesses that hold great potential for the future.
Sources: Vocal
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