IRP 125 – Developing a Shariah- Compliant Intellectual Property Valuation Framework: Addressing Funding Gaps in Malaysia

ISRA Institute is pleased to announce the publication of ISRA Research Paper No. 125/2026, entitled Developing a Shariah-Compliant Intellectual Property Valuation Framework: Addressing Funding Gaps in Malaysia, authored by Dr Noor Suhaida Kasri, Professor Dr Said Bouheraoua, and Dr Nadia Naim.

Can intellectual property become a viable source of Shariah-compliant financing for Malaysian businesses? This is the central question explored in the research, which examines the challenges and opportunities of leveraging intellectual property (IP) assets to expand access to financing.

As Malaysia moves toward an innovation-driven economy, many small and medium enterprises (SMEs) still struggle to secure financing against their intellectual property (IP) assets. Valuation uncertainties, limited institutional expertise, and Shariah-compliance considerations remain significant barriers.

Drawing on industry surveys and stakeholder consultations, this research proposes a Malaysia-centric Shariah-compliant IP valuation framework based on a modified Relief-from-Royalty method. The framework incorporates Shariah principles into IP valuation and introduces a Shariah-Tayyib Scoring Matrix to assess the ethical, governance, social, environmental, and Shariah-compliance aspects of IP commercialisation.

The paper also puts forward policy recommendations, including national IP valuation standards, a halal royalty database, SME capacity-building initiatives, and a regulatory sandbox to support the practical adoption of IP-based Islamic financing.

The research offers a pathway towards unlocking the financing potential of intellectual property, particularly for innovation-driven SMEs, while strengthening Malaysia’s Islamic finance ecosystem.

We invite researchers, policymakers, financial institutions, and industry practitioners to explore the findings and recommendations.