Intellectual Property as a Strategy for a Tariff-Driven World - Trademark Registration Malaysia & Singapore

In April 2025, the leader of one of the world’s largest economic powers decided to impose tariffs against other countries, including many in Southeast Asia.^[1] The region, which depends on exports for its economic growth, was significantly affected by the decision. Malaysia has seen tariffs rise to double-digit percentages, impacting several industries. The Malaysian government has since been working to negotiate a fairer and more balanced trade agreement to protect domestic interests while ensuring continued access to global markets.

As part of its strategic response, Malaysia established the National Geoeconomic Command Centre (NGCC), a body designed to monitor global trade developments and coordinate policy reactions to both tariff and non-tariff barriers. A particular focus of the government’s initiatives has been to support small and medium-sized enterprises (SMEs), which form the backbone of the economy. To assist them, the Malaysia External Trade Development Corporation (MATRADE) has been allocated RM20 million to help these businesses expand into new markets.^[2] Additional financial aid is also accessible through development financial institutions and various government schemes.

Meanwhile, other countries in the region have faced even more severe tariff pressures. One Southeast Asian nation was initially hit with a staggering 46% tariff rate, which was later reduced to 20% during last-minute negotiations. However, the resulting agreement included a critical concession: the country pledged to remove all tariffs on imports from the tariff-imposing economic powerhouse.^[1] For neighbouring countries like Malaysia, such deals may establish new baselines and increase pressure on local industries that already struggle to match the economies of scale and cost advantages of foreign producers. Foreign businesses, with their lower production costs and larger output capacities, could saturate local markets and drive local companies to the edge. At the same time, many Malaysian sectors rely on foreign markets, which makes the situation even more challenging.

In this increasingly volatile trade environment, Malaysian businesses must look beyond conventional cost-cutting and operational efficiencies. One of the most strategic tools available to them is the effective use of intellectual property (IP). IP protection and management have become a necessary business strategy that can help shield local firms from unfair competition and strengthen their position in new and existing markets through legal means.

Businesses that are considering shifting their production or expanding into new markets with more favourable trade terms must ensure that their IP rights, especially patents, industrial designs, and trademarks, are registered and enforceable in those jurisdictions. This allows them to maintain exclusivity over their products and services, preventing foreign competitors from exploiting or imitating their innovations. It also ensures that any expansion or diversification into new markets comes with the legal protections necessary to safeguard long-term profitability and even survival.

Moreover, Malaysian firms and businesses should integrate an IP strategy into every stage of their supply chain. As production facilities or logistics hubs are relocated to new locations, companies must protect proprietary technologies, branding, trade secrets, and other intangible assets at every point along the chain. IP protection not only mitigates the risk of leakage or unauthorised use but also helps maintain a competitive edge in the markets. Also, the Malaysian government encourages exporters to leverage the country’s 18 Free Trade Agreements for greater international market access, making strong IP protection essential to support and safeguard their competitiveness abroad.^[3]

Another important aspect is that strong domestic IP rights can serve as a barrier against foreign encroachment. With comprehensive protection in place, Malaysian authorities can prevent the import and sale of infringing goods, particularly those that mimic or replicate local innovations. This is especially critical if trade agreements grant tariff-free access or minimal tariffs to Malaysian markets. Without IP enforcement, local firms could be vulnerable to imitation and lose their competitive advantage even within their own country.

While it remains to be seen whether international firms are gaining an advantage over local businesses due to the imposed tariffs, the legal framework in this country is well-equipped to uphold the rights of domestic IP holders. An example illustrating this is the case of Nestlé Products Sdn Bhd v Mad Labs Sdn Bhd, which concerned the use of a QR code and its associated dynamic infrastructure on Nestlé’s products.^[4] Mad Labs had developed the QR code system for a six-month trial period. However, Nestlé continued to use the system beyond the agreed-upon timeframe without obtaining Mad Labs’ authorisation. The Court held that Mad Labs retained ownership of the dynamic functionality and proprietary system underpinning the code. As a result, the Court awarded Mad Labs compensation and issued an injunction to prevent Nestlé from further unauthorised use of the system.

Furthermore, intellectual property can be a vehicle for growth and innovation. Proactively protecting new technologies, designs, or brands allows Malaysian firms to license their IP, attract investors, and explore partnerships both locally and internationally. IP should not be seen merely as a defensive mechanism but as a value-generating asset that adds to the firm’s overall worth and resilience. An example of such a strategy can be seen in the Malaysian lifestyle tea brand, Tealive. Its IP portfolio includes registered trademarks, brand names, logos, and even proprietary flavour formulations.^[5] The strategic combination of these IP assets plays a crucial role in maintaining the brand’s ongoing success, strengthening its market presence, and delivering a consistent, high-quality consumer experience. Apart from protection against unauthorised use, Tealive’s IP also contributes to the valuation of its parent company, Loob Holding, particularly in the context of preparing for an initial public offering (IPO).^[5] ^[6]

Tariffs inevitably reshape the way companies do business. They force a re-evaluation of strategies, resources, and protections. Intellectual property protection provides a means to support Malaysian innovations, enhance their competitiveness, and maintain relevance in a turbulent global economy and trade. As trade negotiations with the major economic power continue, the outcomes remain indefinite. What is certain, however, is that Malaysian businesses can no longer afford to overlook IP. It offers both a form of insurance and a strategic advantage in an era defined by tariffs, competition, and rapid change. By embedding IP protections into their core business models, Malaysian companies can build resilience not only for survival but for long-term success in the domestic and global markets.