In an ambitious move to tackle the growing menace of cybercrimes in the country, Malaysia is set to implement a new regulatory framework requiring social media and instant messaging platforms to obtain licenses beginning January 1, 2025. Enforced by the Malaysian Communications and Multimedia Commission (MCMC), this regulation targets service providers with at least eight million users in Malaysia. Its primary objective is to combat a range of online misdemeanors, from fraud and gambling to cyberbullying and sexual crimes against children. This legislation mandates that these providers secure an Applications Service Provider Class License under the Communications and Multimedia Act 1998 (Act 588). The government has outlined the penalties for non-compliance after the grace period, which starts on August 1, 2024, and ends on December 31, 2024. Overstepping the December deadline could lead to fines up to RM500,000, imprisonment for up to five years, or even both. Additional fines could accrue for each day the violation continues post-conviction, adding further weight to the urgency of compliance.
Industry Concerns and Government Response
The Asia Internet Coalition (AIC), an alliance representing major tech companies such as Meta, Apple, and Google, has expressed significant concerns about the impending regulatory framework. In a public statement, the AIC urged Prime Minister Anwar Ibrahim to reconsider the implications of the new rules, arguing that the framework might misalign with broader economic objectives. They emphasize that the regulation’s complexity and compliance costs could stifle innovation and burden businesses, potentially deterring investment in a rapidly evolving digital landscape. AIC leaders highlight the need for more time for the industry to understand and adapt to the new requirements, claiming the grace period is insufficient for comprehensive adjustments.
Countering the concerns raised by the AIC, Malaysia’s Communications Minister Fahmi Fadzil has maintained that the country’s laws must be respected for these companies to continue operations within Malaysia. Fadzil stressed that the government’s primary aim is to secure a safer internet, particularly protecting vulnerable populations like children and families from cyber threats. Although he acknowledges the concerns raised by the tech giants, he remains firm in the belief that social media and messaging platforms must comply with Malaysian regulations. However, Fadzil also assured that the government remains open to dialogues with stakeholders to minimize any potential adverse effects.
Balancing Regulation and Innovation
In a bold initiative to address the increasing threat of cybercrimes, Malaysia plans to introduce a new regulatory framework requiring social media and instant messaging platforms to obtain licenses starting January 1, 2025. This regulation, enforced by the Malaysian Communications and Multimedia Commission (MCMC), targets service providers with at least eight million users in the country. Its main aim is to fight various online offenses, including fraud, gambling, cyberbullying, and sexual crimes against minors. Under this legislation, providers must obtain an Applications Service Provider Class License as per the Communications and Multimedia Act 1998 (Act 588). The government has set out penalties for those who do not comply after a grace period running from August 1, 2024, to December 31, 2024. Failure to meet the December deadline could result in fines up to RM500,000, imprisonment for up to five years, or both. Additional daily fines may also be imposed for ongoing violations after conviction, making timely compliance crucial for service providers.
