Malaysia: An Intellectual Property Overview

Malaysia’s intellectual property (IP) landscape continues to evolve alongside the country’s broader economic and digital priorities. As the government continues to adopt strategic policies to position the country as a technology-driven economy, IP is increasingly viewed as a valuable commercial asset capable of supporting financing, technology transfer and market expansion, particularly for small and medium-sized enterprises (SMEs). 

Over the past year, developments have been driven more by institutional strengthening and enforcement initiatives. Meanwhile, emerging technologies such as AI continue to test the boundaries of the country’s existing IP frameworks. Against this backdrop, Malaysia remains an active and evolving IP jurisdiction, where protection, digitalisation and business strategy are increasingly intertwined.

Budget 2026 and IP as an Economic Driver 

Generous allocations to IP in Malaysia’s Budget 2026 demonstrate growing recognition of IP as a crucial economic catalyst. Among the notable allocations is funding for the Intellectual Property Corporation of Malaysia (“MyIPO”) to develop IP valuation capabilities and to implement an IP Apprentice Programme for Technology Transfer Offices (TTOs). Increased funding has also been given to enforcement agencies with a view to strengthening the protection of consumer and IP rights.Enforcement is necessary to protect IP creation and registration.

Growing IP Awareness and SME Engagement 

As part of the expansion of IP awareness and strategic IP management among Malaysian businesses, MyIPO continues to take on sustained key roles and initiatives. These include MyIPO’s renewal of its ongoing collaboration with the World Intellectual Property Organisation (WIPO) in conducting IP management clinics (IPMCs). In 2025, WIPO and MYIPO conducted the third round of IPMCs in the northern region of Penang, specifically targeted at SMEs. The clinic provided participants with hands-on guidance on realising IP rights as a tangible commercial value. 

On the legislative front, Malaysia’s patent framework entered a new phase on 31 December 2025 with the implementation of the much-anticipated post-grant opposition proceedings regime, the Patents (Amendment) Regulations 2025. The new framework introduces a mechanism allowing any “interested persons” to oppose a granted patent within six months after the publication of the grant, provided no court proceedings in relation to the patent have already been commenced. Proceedings will be conducted entirely before the Registrar, who may be assisted by an ad hoc opposition committee. Designed to provide a cost-effective alternative to High Court invalidation actions, the opposition process offers parties the prospect of earlier commercial certainty through a predominantly documentary (statutory declaration) and submissions-based procedure, with challenges confined to core patentability requirements and the omission of essential drawings. For patent owners, this means increased exposure to scrutiny immediately following the granting of a patent, requiring greater emphasis on early post-grant risk assessment. On the other hand, the regime presents the challengers with an opportunity to address freedom-to-operate concerns without the time and cost of litigation. The utilisation and effectiveness of this regime remain to be seen. The framework will no doubt increase the stakes of early decision-making, as unsuccessful opponents are as a general rule precluded from pursuing subsequent court-based invalidation except by way of appeal or in the context of infringement proceedings.

Digitalisation, AI and Emerging Technologies 

AI continues to present both opportunity and complexity for Malaysia’s IP regime. The National AI Action Plan 2026–2030, premised on the existing Artificial Intelligence Governance and Ethics (AIGE) framework, outlines strategies for AI governance, its societal use, as well as industrial adoption. These initiatives form part of Malaysia’s broader vision to become an AI-driven nation by 2030, supported by expanding infrastructure, including a world-class 5G network and plans for the country to host two thirds of ASEAN’s data centre capacity by 2035.  

For businesses and IP practitioners, this signals that AI-related IP strategies must increasingly align not only with evolving legislation but also with national priorities on AI governance and infrastructure development. 

Public discourse, including the recent “National Dialogue on IP and AI” led by MyIPO, highlights growing concern over the extent and scale of the AI impact on businesses and the apparent legal gap. Yet AI’s continued advancement and penetration of conventional business models seems inevitable as many businesses rush to embrace this technology without necessarily appreciating its full impact.

A dedicated AI Governance Bill is currently on the cards to address these concerns and is expected to address ethical considerations, harm mitigation, incident reporting and responsible use of AI. According to the Digital Minister Gobind Singh Deo, the AI Governance Bill forms part of a larger AI legislative framework expected to be presented to the Cabinet in June 2026. The government’s commitment to AI development is further reflected by Budget 2026 allocations, including MYR18.1 million for the National AI Office (NAIO), MYR53 million for the Malaysia Digital Acceleration Grant, investment in a sovereign AI cloud infrastructure, and MYR5.9 billion for expanded research and innovation. 

Copyright Digitalisation 

As part of broader government digitalisation efforts, MyIPO has transitioned the Copyright Voluntary Notification (CVN) system to full online submission, with digital certificates issued upon successful notification. This move aligns with MyIPO’s broader efforts to streamline processes, reduce administrative inefficiencies, and enhance user accessibility. As part of the digitalisation push, an additional fee of MYR50 will be imposed on any CVN applications submitted manually post 2 January 2026. 

Commercialisation of IP 

A significant market-facing development is the growing emphasis on IP-backed financing. In its landmark move, Malaysian Industrial Development Finance Berhad (MIDF) became the first Malaysian bank to sign a memorandum of understanding with WIPO under the ASEAN IP Finance Initiative. This collaboration includes a pilot IP-backed lending programme aimed at enabling businesses to leverage their IP assets as collateral for financing. This development represents a significant step towards bridging the gap between IP ownership and access to capital. It highlights increased recognition of the confluence of IP law, finance and valuation, and the expanding role of IP professionals beyond traditional registration and enforcement work. 

On the trade mark front, MyIPO introduced a special promotional campaign titled “Lindungi Jenama Lokal, Tembusi Pasaran Global” until 31 December 2025, offering a discounted trade mark filing fee to encourage local brand protection. Alongside Malaysia’s accession to the Madrid Protocol filing system, this additional initiative is also reflective of the country’s continued efforts to increase trade mark uptake among Malaysian businesses, particularly SMEs. 

In addition, the government has announced plans to develop a regulatory framework for IP valuers, signalling a move towards formalising standards and oversight in IP valuation practice. This is likely to enhance confidence in IP valuation exercises, especially in the context of financing, transactions and dispute resolution. 

Conclusion 

In 2025, there was a quiet but meaningful strengthening of Malaysia’s IP legislative ecosystem, with growing attention on enforcement, valuation and commercial use. As attention shifts to 2026, digitalisation and AI governance are set to accelerate this momentum. Together, these developments herald the steady growth of Malaysia’s IP landscape, which is poised to unlock new opportunities and propel the nation towards a more innovation-driven, business-ready future.