Global consulting firm J.S. Held announces a collaboration between the International Valuation Standards Council (IVSC), the Intellectual Property Office of Singapore (IPOS), the National University of Singapore, and J.S. Held that studies Intangible Assets in ASEAN Capital Markets: Trends, Gaps, and Policy Implications.
Experts from the Singapore Office of J.S. Held, including Iain Potter and MinHao Chen, assisted in grounding the IVSC policy and standard-setting dialogue in robust market evidence. Commenting on J.S. Held’s role in the study, Executive Vice President, Iain Potter, FCA, FCIArb, shares, “We were asked to apply our work in intangible asset valuation across Asia and our commitment to evidence-based opinions for clients and tribunals to the study.” The report highlights that despite increased recognition of intangible assets in the financial statements of ASEAN companies over the last two decades, absolute values of recognized intangible assets remain low, particularly for ASEAN companies listed on local exchanges.
This study examines the recognition and reporting of intangible assets (excluding goodwill) among publicly listed companies in the ASEAN-5 (Indonesia, Malaysia, Philippines, Singapore, and Thailand). It finds that Recognized Intangible Assets (RIA) remain a small but growing portion of enterprise value (EV), rising from 1% in 2005 to over 2.5% in 2022. The study highlights disparities across markets and sectors, with most RIA concentrated in a few companies and often linked to concession rights, licenses, and acquired intellectual property (IP).
Foreign-listed ASEAN companies tend to report higher levels of IP-related intangible assets, while locally listed firms focus more on infrastructure-linked concessions. The study underscores a significant gap between market value and book value, suggesting widespread unrecognized intangible assets. It calls for a comprehensive review of financial reporting standards, particularly IAS 38, to better reflect modern business models and intangible-intensive sectors.
Policy recommendations include promoting holistic recognition of intangible assets, enhancing disclosure frameworks, and aligning financial reporting with valuation realities. The findings aim to inform regulators, investors, and policymakers on the evolving role of intangible assets in capital markets and the need for updated standards to support innovation, transparency, and efficient capital allocation.
J.S. Held Chief Intellectual Property Officer and Ocean Tomo Co-founder James E. Malackowski, CPA, CLP, shares, “The team at IPOS has long been a thought leader on recognizing the value of intangible assets. I have no doubt that other national patent offices and policy makers are watching their work as an example to follow.”
To learn more about the IVSC study on intangible assets in ASEAN capital markets—and how your business can benchmark itself against the data—contact Info@jsheld.com. The study facilitates comparisons of intangible asset composition across industries, sectors, and countries, including metrics such as the RIA/EV Ratio. Business leaders can also explore how the types of intangible assets companies recognize (e.g., intellectual property, concession rights, licenses) align with those of sector peers and competitors.
