A chorus of critics slammed the government’s decision, which they say was made without any input from stakeholders, as rushed and unworkable.

Malaysia’s new social media regulation aimed at holding platforms accountable has encountered significant pushback from industry leaders. The Asia Internet Coalition (AIC), representing major tech companies such as Grab, Meta, Apple, Amazon, Google, and others, has voiced strong concerns about the upcoming licensing requirement for social media and instant messaging platforms. In an open letter to Prime Minister Anwar Ibrahim, the AIC urged the government to pause and reconsider how this new licensing regime aligns with Malaysia’s broader economic goals before moving forward.

The AIC contends that the framework introduced by the Malaysian Communications and Multimedia Commission (MCMC) is unworkable for the industry and could stifle innovation by placing undue burdens on businesses. The Coalition also warned that the move could deter investments due to the high costs and complexity of compliance.

One of the primary concerns raised by the AIC is the lack of formal public consultation prior to the publication of the Information Paper and FAQs on August 1, 2024. The absence of critical discussions has led to uncertainty within the industry regarding the scope of obligations and what exactly the platforms would be committing to. The AIC stressed that no platform can be expected to register under such unclear conditions.

While acknowledging the need to address issues such as online scams, harm to minors, and hate speech, the AIC emphasised that the proposed implementation timeline leaves the industry with insufficient clarity and time to understand the full implications of the new regulation. The Coalition reaffirmed its commitment to working together on these critical issues, but insisted that collaboration must be based on transparency, fairness, and reasonable timelines to achieve effective and sustainable outcomes.

The new regulatory framework announced by the MCMC mandates that all social media and instant messaging platforms with at least 8 million Malaysian users must apply for a licence by January 1, 2025. Failure to comply will result in the platform being deemed illegal under the Communications and Multimedia Act (1998). Non-compliant service providers could face fines of up to RM500,000, imprisonment of up to five years, or both. Additionally, platforms may be fined RM1,000 for every day the offence continues after conviction.

Communications Minister Fahmi Fadzil has stated that he expects social media platforms to begin submitting their licensing applications as early as October 2024.