The global intellectual property (IP) market has become an increasingly important pillar of knowledge-based economies, driven by rapid technological change, expanding startup ecosystems and greater emphasis on protecting intangible assets.
More than 3.46 million patent applications were filed globally in 2023, an increase of 3.3% from the previous year. The broader IP market spans patents, trademarks, copyrights, trade secrets and licensing services, all of which are becoming more strategically important as businesses derive a larger share of their value from innovation, technology and brands.
Trademark activity has also accelerated. The World Intellectual Property Organization (WIPO) recorded 18.1 million trademark applications globally, up from 16.9 million in 2021, reflecting stronger efforts by companies to protect their brands across markets.
China, the United States and the European Union remain among the largest contributors to global patent activity, with China alone accounting for more than 1.58 million patent applications in 2023. India, meanwhile, saw trademark filings cross the 500,000 mark for the first time.
The expansion has been supported by stronger research and development spending, increasingly vibrant startup ecosystems and the digitisation of IP registration and enforcement.
Malaysia is well placed within this global landscape.
According to the US Chamber of Commerce International IP Index 2026, Malaysia maintains a highly competitive, upper-middle-tier position for IP protection in the Asia-Pacific region. It is consistently ranked among the strongest IP jurisdictions in Southeast Asia, behind Singapore, and remains a regional leader among emerging economies.
Yet this strength is rarely highlighted prominently during trade dialogues, cross-border investment discussions or business engagements, at least not in many of the sessions covered by BusinessToday.
That prompted BusinessToday to meet with the Intellectual Property Corporation of Malaysia (MyIPO), the agency under the Ministry of Domestic Trade and Cost of Living responsible for administering and developing Malaysia’s intellectual property system, to understand how the country is encouraging greater IP creation, protection and commercialisation among businesses, universities, researchers and other stakeholders.
The conversation comes at a time when Malaysia’s intellectual property ecosystem is entering a new phase.
After years of strengthening the country’s legal, administrative and registration framework, the focus is increasingly shifting towards a more demanding objective: ensuring that Malaysian companies not only create and protect intellectual property, but also understand how to turn it into revenue, enterprise value, investment and global market opportunities.
Malaysia today stands among the more mature intellectual property jurisdictions in ASEAN, supported by its participation in WIPO and key international IP treaties, as well as an established domestic framework covering patents, trademarks, industrial designs, copyright and other intellectual assets.
The numbers suggest domestic innovation activity is strengthening.
Malaysian patent applications increased 23.3% from 993 in 2024 to 1,224 in 2025, lifting the domestic share of total patent applications from 13.4% to 15.5%. The momentum continued into 2026, with Malaysian filings reaching 477 during the first five months of the year, 39.5% higher than in the corresponding period a year earlier.
But for MyIPO Director General Puan Yusnieza Syarmila Yusoff, filing volumes tell only part of the story.
The more important question is what happens after an idea has been protected.
Can the intellectual property attract investment? Can it be licensed or commercialised? Can it become a product, a technology platform or a globally recognised brand? More importantly, can it create jobs, support exports and strengthen the long-term value of Malaysian businesses?
These are increasingly the questions MyIPO wants Malaysian businesses, universities, researchers and entrepreneurs to ask.
“The strength of an IP ecosystem should not be judged by filing numbers alone,” Yusnieza said in an exclusive interview with BusinessToday.
Malaysia, she said, needs to strengthen the entire IP value chain “from creation and protection to commercialisation, financing and market expansion”, with intellectual property playing a larger role in the country’s transition towards a high-income, innovation-driven economy.
The Valuable Asset Of Owning Intellectual Properties
Malaysia’s relative strength in the regional IP landscape provides a solid foundation.
The country has built international links, a legal framework and increasingly digital registration services. Yet one of the biggest barriers to wider IP adoption remains much closer to home: many smaller businesses still do not fully understand what intellectual property can do for them.
MyIPO believes the prevailing mindset among many SMEs remains too narrow.
For some businesses, patents and trademarks are still regarded as compliance matters or legal expenses rather than part of commercial strategy.
Others only begin thinking about protection once a new product, technology, design or brand has already entered the market — potentially after valuable intellectual assets have been exposed.
Yusnieza wants that sequence reversed.
IP should be considered from the earliest stages of building a company, she said. When an entrepreneur creates a new technology, distinctive brand or original content, the question should not stop at whether the asset can be registered.
It should extend to how that asset can support the company’s long-term growth.
MyIPO is consequently intensifying awareness initiatives, university and startup engagement, industry collaboration and digital outreach, while attempting to explain IP using business terminology — competitiveness, financing, licensing, market access, valuation and expansion.
The shift MyIPO wants is simple in principle but significant in practice: from asking “How do I register my IP?” to “How can I use my IP to create value?”
The distinction matters increasingly because much of modern corporate value sits outside factories, buildings and machinery.
Technology, brands, software, designs, creative content and proprietary knowledge can represent a substantial portion of a company’s true worth.
This is particularly important for startups and SMEs, which may have relatively few conventional physical assets.
A young technology company might own no factory or significant property, for example, but its patent, software, algorithm, brand or technical knowledge could form the core of its enterprise value.
A well-managed IP portfolio can therefore help differentiate products, support valuation, generate licensing income, facilitate technology transfer and strengthen a company’s appeal to investors.
For MyIPO, the goal is to help make those intangible assets more visible — not only to business owners, but eventually to investors and financial institutions.
This is part of the rationale behind MyIPO NextGen, which represents a broader repositioning of the agency from an IP registry towards an innovation and economic enabler.
The initiative places greater emphasis on recognising intellectual property as an economic asset and exploring mechanisms for IP valuation and IP-backed financing.
“If we can make it easier for businesses to understand the value of their IP and for financial institutions and investors to recognise that value, we can open another pathway for innovative businesses to access capital and grow,” Yusnieza said.
From Protection To Corporate Strategy
Sophisticated companies rarely treat IP as an isolated legal function.
Instead, intellectual property is incorporated into decisions around product development, market entry, financing, partnerships and international expansion.
Companies need to know what IP they own, where its commercial value lies, which markets it protects, and whether those rights should be licensed, transferred, commercialised or expanded internationally.
That can also provide investors with better visibility over a company’s technology, competitive position and future revenue opportunities.
For Malaysia more broadly, a strong IP framework carries another benefit: investor confidence.
International companies considering higher-value investments need confidence that their patents, technologies, trademarks and designs will be protected under a predictable and transparent framework aligned with global standards.
A robust IP system therefore becomes part of Malaysia’s investment proposition, particularly as the country competes for higher-value projects in technology-intensive industries.
Malaysia already has examples of companies treating IP as far more than a registration exercise.
PETRONAS represents the technology-intensive end of the spectrum.
Its approach demonstrates how intellectual property can be integrated into long-term research, innovation and technology development, supporting broader corporate competitiveness rather than functioning merely as a defensive legal mechanism.
At the other end is creative intellectual property.
MONSTA Studio illustrates how a single creative property can evolve into a wider commercial ecosystem encompassing content, characters, merchandising, licensing, digital platforms, collaborations and overseas opportunities.
The animation company was selected as a finalist for the 2026 WIPO Global Awards, while Malaysia ranked among the top 10 countries by number of applications for the awards.
The interview discussion also highlighted MONSTA’s extensive registration activity, with more than 500 intellectual properties registered as the company built its creative franchise.
The broader lesson, according to MyIPO, is not merely how many registrations a company accumulates.
For PETRONAS, IP supports technological capability and competitive advantage. For MONSTA, creative IP becomes the foundation for an entire business ecosystem.
“That is the mindset we want to encourage among Malaysian businesses: do not simply own IP; know how to build a business around it,” Yusnieza said.
Invaluable Economic Contribution
Malaysia’s creative economy provides a useful indication of the financial importance of intangible assets.
According to figures cited by MyIPO from the Department of Statistics Malaysia’s Cultural and Creative Satellite Account 2024, the cultural and creative industry generated RM130.7 billion in gross value added in 2024, equivalent to 6.8% of Malaysia’s GDP.
It supported 763,100 jobs, or 4.7% of national employment, while exports of cultural and creative products and services reached RM63 billion.
Those numbers reinforce MyIPO’s argument that intellectual property policy is increasingly an economic policy issue.
A brand, character, design or technology can create value far beyond the original product through licensing, merchandising, partnerships, exports and employment.
The policy challenge is ensuring Malaysian creators and companies retain ownership of that value rather than simply generating ideas that are commercialised elsewhere.
Perhaps one of the clearest areas where Malaysia needs improvement is research commercialisation.
Malaysia has a strong university and public-sector research base, but converting that knowledge into commercial businesses remains uneven.
Between 2021 and 2025, universities accounted for 41.5% of local patent applications, while government bodies contributed 38.4% and research centres another 7.6%.
Universities and government bodies therefore accounted for almost 80% of domestic filings.
That is evidence of considerable innovation activity — but also points directly at Malaysia’s commercialisation challenge.
Research can produce patents without necessarily producing businesses.
MyIPO wants stronger links between researchers, technology transfer offices, industry, investors and commercial partners, alongside earlier market validation and better understanding of how a patent can be structured around a viable business model.
Financing remains another obstacle.
A technically strong invention may remain trapped in the laboratory if its inventor cannot secure the capital required to bring it to market.
That is why IP valuation and potential IP-backed financing form part of MyIPO’s longer-term agenda.
Yusnieza describes IP as part of an “innovation-to-value journey”.
The sequence should move from research to intellectual property, then from IP to commercialisation, and finally from commercialisation to economic and social impact.
“The ultimate objective is not simply to have more patents. It is to have more innovations that reach the market and create value,” she said.
Helping SMEs Navigate Cost And Complexity
Awareness is not the only barrier.
Businesses also frequently perceive IP registration as expensive, confusing or administratively difficult, particularly when they need protection beyond Malaysia.
The interview highlighted the need for more practical, layman-friendly education so that SMEs understand the differences between company registration, product approvals, trademarks, patents, copyright and other legal protections.
Businesses also need to understand that registering a company or product does not necessarily establish ownership over a brand, invention or creative asset.
That distinction can become costly when disputes arise later.
MyIPO has therefore expanded its role through education, advisory services, capacity-building programmes and closer engagement with industry.
Digital filing, online searches and electronic communication have already made registration more accessible than in the past.
The agency is also looking towards greater AI integration to make searches and application processes more intelligent and less cumbersome.
Over the next five years, MyIPO expects digitalisation and artificial intelligence to play increasingly important roles in improving service delivery and accessibility.
Domestic And International Protection
The challenge becomes more complex when Malaysian businesses move overseas.
A company may have protected its brand domestically but still remain vulnerable in export markets if equivalent protection has not been secured internationally.
This makes international IP frameworks increasingly important for Malaysia’s export-oriented economy.
During the interview, MyIPO highlighted mechanisms such as the Madrid system, which allows trademark owners to seek protection across multiple participating jurisdictions through a centralised international application process.
The wider policy implication is that IP cannot be viewed solely through the lens of MyIPO.
Export promotion, trade policy, universities, research institutions, investment agencies, SMEs and industry ministries all have roles to play, making intergovernmental coordination important if Malaysia wants companies to commercialise their innovations globally.
Malaysia’s international treaty participation is also extending IP policy beyond purely commercial considerations.
The discussion highlighted Malaysia’s adoption of the Marrakesh Treaty, designed to improve access to published works for people who are blind, visually impaired or otherwise print-disabled.
The treaty framework makes it easier for authorised organisations to reproduce and exchange accessible-format materials without having to negotiate traditional copyright permissions in every instance.
MyIPO said Malaysia’s participation provides access to a much wider pool of accessible materials through international cooperation, including networks associated with WIPO.
It is an example of how an IP framework can simultaneously protect creators’ rights and deliver wider social benefits.
Artificial intelligence presents perhaps the biggest future test.
Malaysia wants to become a regional hub for AI, semiconductors and other high-value technologies, yet AI itself challenges long-established intellectual property principles.
Who owns AI-generated content? Can an AI system be regarded as an inventor? Who is responsible when models train on protected works?
MyIPO is monitoring global developments through WIPO and other platforms while studying issues involving AI-generated inventions and creative works.
The objective, Yusnieza said, is not to restrict technological development, but to maintain a system that remains fair, predictable and conducive to investment.
The agency is also working towards amendments involving seven key IP Acts to ensure Malaysia’s framework remains relevant to AI-generated content, digital business models, cross-border innovation and changing international standards.
That reform agenda is closely aligned with the 13th Malaysia Plan, where AI, digitalisation, high-growth industries, green technologies, research and commercialisation are expected to play larger economic roles.
Keeping Up With Technology
There are already signs of greater domestic IP activity in emerging technologies.
AI-related patent filings rose from just one in 2023 to 23 in 2024 and 35 in 2025, representing 52.2% growth in the latest year.
Among seven key technology areas analysed by MyIPO, environmental technology filings doubled from 13 to 26 in 2025, digital communications applications rose 81.8%, while computer technology increased 66.7%.
The data presented on page 28 of MyIPO’s interview material also showed computer technology leading selected local patent activity in 2025 with 85 applications, followed by medical technology with 55 and IT methods for management with 39.
Together, those three fields accounted for about 65% of applications across the seven technology sectors analysed.
These figures point towards a broader transformation: Malaysia is generating more technology-related intellectual property, but the bigger economic prize lies in converting those filings into commercially competitive companies.
For MyIPO, the next challenge is ultimately cultural.
Malaysia already possesses many of the ingredients required for a stronger innovation economy: universities, research centres, established manufacturing, technology investment and an expanding startup ecosystem.
Countries such as South Korea, Japan, Singapore and China have demonstrated what happens when intellectual property becomes embedded much earlier in corporate, technological and investment decision-making.
The lesson, Yusnieza said, is that “people protect what they value”.
Malaysia therefore needs researchers to think about commercialisation while developing inventions, entrepreneurs to think about IP while designing business models, and investors to understand the economic value embedded in IP portfolios.
That is also why MyIPO wants businesses to move away from seeing intellectual property as something to address only once a company becomes successful.
“Do not wait for success before you start thinking about IP. Think about IP as part of the strategy that creates success,” Yusnieza said.
The ambition is increasingly clear.
Malaysia does not merely want to register more patents and trademarks.
It wants more Malaysian IP to be commercialised, financed, licensed, exported and transformed into companies with sustainable competitive advantages.
“We are moving from registration to enablement, from protection to commercialisation, and from IP as a legal right to IP as an economic asset,” she said.
If Malaysia succeeds in making that transition, the outcome would reach well beyond MyIPO’s registration statistics.
It would mean stronger Malaysian businesses, higher-value employment, deeper innovation, more investment and greater export competitiveness — with intellectual property becoming an increasingly important part of how Malaysian companies create and retain value.
