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  • Joel & Mei

Budget 2018 - Using IP as collateral; Malaysia’s continued efforts

During the recent 2018 Budget Speech, the Prime Minister announced that a sum of RM1.5 billion will be allocated under Skim Jaminan Pembiayaan Perniagaan (SJPP) where intellectual property (IP) may be used as an instrument of financial collateral with up to 80% financing guarantee. The government first recognised that IP can be used as collateral in the 2013 Budget Speech and since then, efforts have been made to amend the existing IP legislations to introduce provisions relating to the use of IP as collateral. These continued efforts would benefit SMEs by enabling them to obtain financing using their IP instead of the conventional tangible assets.