: The financial services industry needs to formulate conducive policies for Intellectual Property (IP) to be accepted as a security instrument, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek said.
He said this would facilitate IP-based business and transactions, apart from spurring the development of an innovative ecosystem.
"Malaysia's transformational agenda with the view of becoming a high-income nation by 2020 has included intellectual property as a crucial area to be further strengthened and promoted.
"Notably, the rise in value of intellectual capital and intangible assets are among the factors that move IP from the sideline to the centre (stage) of the economy," he said at the launch of the IP Financing Conference here today.
His speech was read by Domestic Trade, Cooperatives and Consumerism Ministry Secretary-General Datuk Seri Alias Ahmad.
Hasan said the industries must be aware that other countries were also leveraging on IP monetisation and IP as a form of security.
"By working together collectively as a nation, the industries managed to lead the IP valuation and financing initiatives and contribute to the efforts of achieving global sustainability and evolving economic growth," he said.
Bank Negara Malaysia (BNM) Deputy Governor Datuk Muhammad Ibrahim said the financial sector has to keep pace as the real economy is undergoing significant transformation.
"First step needs to be taken expeditiously in order (for financial services) to remain relevant. Just as financing looked to physical assets in the industrial age, it must look to intellectual assets in the information age.
"IP is the tool that protects ownership over an innovation and in turn, it will be an investment in knowledge with an anticipation of profits," he said.
Thus, Muhammad said understanding IP could be a good gauge of future cash flow and business growth and opportunities.
"Though in Malaysia itself, IP has been growing steadily, we have yet to fully leverage on the value and significance of intangibles, including IP in particular, as an important asset to create growth opportunities for businesses.
"This is especially true for innovative small and medium enterprises whose value tends to be more closely linked to intangible assets," he said.
Organised by BNM and Intellectual Property Corporation of Malaysia (MyIPO), the one-day conference attended by senior managers of local and international banks is aimed at expanding their knowledge on issues surrounding IP financing locally and abroad.