KUALA LUMPUR, Dec 19 (Bernama) — In the wake of the strong response to its Intellectual Property Financing Scheme, Malaysia Debt Ventures Bhd (MDV) expects all of the RM200 million fund to be disbursed by end-2014.
Amiruddin Kemat, Vice-President of Corporate Planning and Communication Division, said over 20 companies in the biotechnology, creative, as well as information, communications and technology industries had applied to the scheme before its official launch today, with three of them having been approved.
“Some of the applicants being reviewed are in the process of registering their intellectual property rights (IPRs), or having their IPRs being valued by the relevant authority,” he told reporters after the launch of the scheme here Thursday.
The scheme was part of the government’s Budget 2013 announcement that allowed the utilisation of IPR as the collateral for funding of technology companies.
MDV Chairman, Tan Sri Zarinah Anwar, said for younger and smaller tech-focused companies, their lack of trace record and tangile assets often posed a constraint in terms of financing options.
“This is because tangible assets are typically required as security for loans,” she said.
MDV said the scheme will allow companies to leverage on their IPRs to secure financing of up to RM10 million, or 80 per cent of the value of their IPR, whichever is lower, for a five-year tenure.
The scheme will also provide an annual interest rate rebate of two per cent and a 50 per cent financing principal guarantee from the government, it said.
It said the three successful applicants — KRU Malaysia Sdn Bhd, Datamicron Sdn Bhd and Info Connect Sdn Bhd — had been granted a total of RM18.7 million in fund, for their IPRs in songs, business intelligence solutions and insurance solutions respectively.
Their IPRs were valued at over RM70 million, it said.