“It is definitely not a mature area like accounting standards for physical assets, which is why I think in the world ... whether it is the accounting bodies or the valuation bodies, this is a subject of great interest and it is an area that’s developing, and it is an area that we are also interested in Singapore,” says Tan Kong Hwee, CEO of the Intellectual Property Office of Singapore (IPOS).
When it comes to valuing a business, analysts prefer to look at tangible assets. Property, plants and equipment are what creditors know they can eke some money out of in the event of a liquidation. That reality does not really gel with how modern businesses function.
According to data from the World Intellectual Property Organisation (WIPO), the estimated value of corporate intangible assets (IA) has grown to US$97.6 trillion ($126.64 trillion) in 2025 from US$6 trillion in 1996, and has generally made up around two-thirds of global GDP. For companies, IA can include assets like patents, copyrights, trademarks, franchises and goodwill.
