4th November 2026 - 4 min read
Malaysian Industrial Development Finance Berhad (MIDF) has approved RM10 million in financing for two homegrown brands, Christy Ng and Sunglo yoghurt maker Magic Food Sdn Bhd. MIDF accepted both companies’ intellectual property (IP) as security. The deals came through a pilot that MIDF ran with the World Intellectual Property Organization (WIPO), which closed on Monday.
We were at Menara MBSB Bank in Petaling Jaya on Monday for the closing ceremony. Deputy Minister of Investment, Trade and Industry YB Tuan Sim Tze Tzin launched the project’s final report. MIDF Chairman Tan Sri Abdul Rahman Mamat also spoke, and officials from WIPO, MyIPO and SME Corp Malaysia attended.
For us, hearing how Christy Ng and Sunglo got their financing made it clear that a brand can help a business get a loan. Lenders usually want property to back a loan, the way a house backs a home loan. If your business has a brand people know but no land or building, a lender here can accept IP too.
The two companies were the first to get financing from MIDF this way. Two valuation firms, Adastra IP and Inngot, worked out what each company’s IP was worth in ringgit. Law firm Abdul Rahman & Partners advised on the legal side. MyIPO then recorded MIDF’s claim on that IP, the way the land office records a charge on a house.
In his speech, YB Sim said IP isn’t only for research labs and tech companies. It’s already inside the Malaysian brands and products you buy every day. Christy Ng sells shoes and handbags, and Magic Food makes yoghurt.
Tan Sri Abdul Rahman pointed out that when a business asks for a loan, the talk often starts with land, buildings and machinery. But a patent, a trademark or a brand that customers trust is an asset too.
He said the project shows that IP financing can work in practice. He added that MIDF now knows how to value IP, handle the paperwork and check the risks, and plans to build on this.
The pilot has now closed, and MIDF hasn’t said when it’ll offer IP-backed financing to other businesses. YB Sim thanked SME Corp Malaysia for putting RM10 million into it. It was also WIPO’s first IP finance pilot anywhere in the world. It’s an early test, not a product you can sign up for.
A lender can only take your IP if you can show you own it. So register your trademark with MyIPO, along with any patent or product design. MyIPO’s filing fee for a trademark starts at RM950 per class.
A lender will also want to know what your IP is worth, and paying an expert to value it isn’t cheap. In October, MyIPO launched a RM1 million IP Valuation Financing Fund to help at least 50 SMEs and start-ups pay for this. MyIPO hasn’t shared how to apply yet, and we’ll update you when it does.
In the meantime, SME loans are still the main option if you need funding for your business. Some banks offer them without collateral, though you may need a guarantor. You can compare SME business loans on RinggitPlus to see what each bank offers and what you need to apply.
If the West Asia conflict has affected your business, Bank Negara Malaysia’s SME Stabilisation Relief Facility is open until 31 December 2026, or until the RM5 billion fund runs out. You can get up to RM750,000 for up to five years, at a rate of no more than 3.75% a year. CGC or SJPP can guarantee up to 80% of the financing if you don’t have enough collateral. You can also compare SME business loans on RinggitPlus.
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Christina writes about personal finance with an eye for making the complicated feel straightforward. She is drawn to the everyday money decisions people face and genuinely enjoys finding the clearest way to explain them. Between articles, she is probably napping, on a hiking trail, or terrorising her sister’s cats.
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