KUALA LUMPUR – Malaysia is set to implement a new regulatory framework for large social media and internet messaging platforms in the country. The Malaysian Communications and Multimedia
Commission (MCMC) announced that enforcement under this class license will commence on
January 1, 2025.
Why is it necessary?
A study by the creative agency We Are Social found that people in Malaysia, aged 16 to 64,
used an average of nearly eight social media platforms, ranking second only to the Philippines
and ahead of other countries such as Singapore, Indonesia, India, Thailand and Vietnam.
Amid growing concerns over issues like cybercrimes, scams, cyberbullying and online child
safety, this initiative by MCMC can be seen as timely. Between January 2020 and October
2023, the MCMC reported online scam losses totalling SG$687 million (US$506 million) and
received 3,419 complaints related to hate speech.
The recent suicide of a Malaysian TikTok influencer due to cyberbullying also stirred public outrage in a country where social media platforms are widely used.
However, as with any large-scale policy, it has sparked considerable debate over its feasibility
and the broader implications for civil liberties. Critics question whether the framework can be
effectively implemented and enforced, given the complexity of monitoring large digital platforms
and the rapidly evolving nature of online communication.
There are also concerns that the regulatory measures might unintentionally stifle freedom of expression, as stricter controls on social media could limit open discourse, dissent and creative expression.
In March, Deputy Communications Minister Teo Nie Ching informed parliament that MCMC was
in the final stages of developing a licensing framework for social media platforms operating in
Malaysia.
The New Straits Times quoted her as saying that this targeted enforcement is justified due to the presence of highly harmful content on social media and internet messaging services.
Malaysia’s introduction of the new regulatory framework seems to reflect similar efforts in the
region, such as those in Indonesia and Singapore, aimed at protecting the public from perceived
online threats.
Meanwhile, the European Union, through its Digital Services Act (DSA), and Australia, via its
News Media Bargaining Code, have both enacted different regulatory measures to ensure that
these platforms are accountable for the content they host and the impact they have on society.
Who needs to apply?
If you are worried about needing to apply for a licence or risk losing all your social media accounts, fear not. Only social media platforms with over 8 million users like Facebook, Facebook Messenger, Instagram, YouTube, TikTok, WhatsApp, Telegram, WeChat and X (formerly Twitter) will need to apply for it.
How does MCMC determine who must apply?
The MCMC stated it will mainly rely on data from its official surveys, including the Internet User
Survey, to assess the number of users in Malaysia.
It will also consider other publicly available and reliable data sources to determine if service providers meet the required user threshold.
What happens if they don’t apply?
Not obtaining a licence after the enforcement date of January 1, 2025, will be considered an
offence and legal action may be pursued under the Communications and Multimedia Act.
How do you apply for the license?
Similar to the cloud licensing framework introduced in 2021, the licensing of Service Providers
under the applications service provider class licence (ASP(C) Licence) allows MCMC to maintain a light-touch regulatory approach, ensuring oversight without hindering innovation. To obtain an ASP(C) Licence, a Service Provider must:
– Be a locally incorporated entity (unless exempted by the Communications Minister),
– Pay an annual registration fee of RM 2,500, and
– Submit the necessary documents to MCMC according to the class licence application
checklist (e.g., application form, company profile, service details, etc.).
There are no restrictions on foreign equity ownership, and the ASP(C) Licence is valid for one
year.
In conclusion, Malaysia’s upcoming regulatory framework for social media and internet
messaging platforms mark a crucial step in addressing issues like cybercrimes, scams,
cyberbullying and online child safety. While the initiative aims to hold major platforms
accountable, it has sparked debates about its feasibility and potential effects on freedom of
expression.
As the enforcement date of January 1, 2025 approaches, stakeholders must navigate the licensing process carefully and consider the broader implications of these regulations. Striking a balance between public safety and civil liberties will be vital in creating a safer online environment for all citizens. – October 17, 2024