Intellectual Property Financing Scheme (IPFS) & Intellectual Property Financing Scheme (IPFS-i)

Introduction

The Intellectual Property Financing Scheme (IPFS) is a Government backed scheme aims to inculcate innovation and increase productivity by availing financing to companies that own legal and beneficial Intellectual Property Right (“IPR”). This Scheme will enable the companies with IPR to use their IPR as an additional source of collateral to obtain funding and spur more investments with high technology capabilities.

Eligibility Criteria

  • Private Limited Company (Sdn Bhd) or Public Company (Bhd) duly incorporated in Malaysia and registered with Companies Commission of Malaysia
  • The Companies shall have minimum principal local equity participation of 51%
  • The Companies must have the legal and beneficial IPR, where the IPR shall be registered, or notified for Copyrights, with the Perbadanan Harta Intelek Malaysia (MyIPO).

Purpose of Financing

  • Working capital;
  • Asset acquisition; or
  • Expansion or upgrading of business

Financing Tenure

Up to 5 years

*A moratorium may be granted up to 12 months and must be within the 5 years, where the companies will service the profit/interest

Financing Amount

Up to RM10 million or 80% of the IPR collateral value, whichever is lower (based on company)

Guarantee Cover

50% on the approved financing

Administration Fee

0.5% on the guarantee cover

Interest/Financing Rate

Determine by Financing Provider

Financing Provider

Malaysia Debt Ventures Berhad

Application Procedures

  • Companies are to submit their applications to Financing Provider after securing a valuation for its IPR or concurrently with the submission for valuation for its IPR.
  • Upon approval, financing provider shall apply for guarantee to CGC.

Application Deadline

This scheme is available from 1st January 2013 and shall end on 31st December 2017 or upon reaching the maximum financing amount of RM200 million, whichever is earlier.