KUALA LUMPUR: Malaysia needs to strengthen its intellectual property (IP) financing ecosystem to help local businesses turn innovation, technology and brands into commercial assets that can support business growth as the country moves towards a more innovation-driven economy.
Deputy Investment, Trade and Industry Minister Sim Tze Tzin said financing ecosystems must evolve to recognise the growing importance of intangible assets, which increasingly determine a company's competitiveness but are not always accepted on the same terms as conventional collateral when businesses seek financing.
He said companies could spend years developing technology, building trusted brands and creating intellectual property that sets them apart in the market, but these efforts were not always reflected in their ability to secure funding.
