The Malaysian government is set to go ahead with a regulatory framework which will make licenses mandatory for all social media and instant messaging platforms.
According to the Malaysian Communications and Multimedia Commission (MCMC), the framework was introduced to combat the increasing cases of cybercrime, including online fraud and gambling, cyberbullying, and sexual crimes against children. It will come into effect on January 1, 2025.
“With the enforcement of this framework, all Internet messaging service providers and social media service providers with at least eight million users in Malaysia must apply for an Applications Service Provider Class Licence under the Communications and Multimedia Act 1998 (Act 588). Any service provider operating without a licence after this period is committing an offence and appropriate legal action can be taken,” it said in a gazette notice on August 1.
If convicted, the service provider can be fined up to RM500,000, or face imprisonment up to 5 years, or both. The platforms can be liable for a further fine of RM1,000 for every day during which the offence is continued after conviction.
During the grace period (August 1, 2024 to December 31, 2024), MCMC said it will develop comprehensive guidelines detailing the conduct requirements and responsibilities that must be proactively adhered to by the said service providers in Malaysia.
The move has raised concerns from the Asia Internet Coalition (AIC), an organisation representing tech giants like Meta, Apple, Amazon, Google, Yahoo, Rakuten, X, and LinkedIn.
AIC has issued an open letter to Prime Minister Anwar Ibrahim to raise concerns about the latest framework and urged the government to pause it and consider how it aligns with its broader economic goals before implementing it.
It believes the framework introduced by the MCMC is unworkable for the industry and will adversely impact innovation by placing undue burdens on businesses. It added that the move would hinder investments and deter future ones due to the complexity and cost of compliance.
AIC also says the proposed implementation time leaves the industry with insufficient clarity and inadequate time to fully grasp the implications.
Communications Minister Fahmi Fadzil responded: “AIC does not represent all companies, just a few, and there are also others that are unrepresented. They are big tech, but our laws are bigger, and if they want to operate in Malaysia, they have to respect and comply with the requirements.
“The Malaysian government still stands by our position that social media and instant messaging platforms need to have a regulatory framework to ensure a safer internet landscape for Malaysians, especially children and families.”
Expressing his willingness to meet with any parties regarding the licensing requirements, he said: “We will continue discussions with companies. We have yet to make a final decision, and Malaysia is very open to discussions.”