AIC urge Malaysia to suspend social media platform licensing

AIC urge Malaysia to suspend social media platform licensing is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• In an open letter, Asian industry groups including Google, Meta and X urged Malaysia to suspend a plan to require social media services to apply for licences.
• In a separate statement, Grab, a member of the coalition, said it had not been informed or consulted about the letter, adding that the government’s plans would not affect its operations.

OUR TAKE
Proposed regulations may hamper Malaysia’s growing digital economy, but keeping a lid on the fast-growing social media is imperative. The move demonstrates the Malaysian government’s determination to address online hazards, but the proposed implementation timeline leaves businesses in the sector without sufficient clarity and time to assess its impact. Both parties should cooperate and work together to promote the stable development of social media platforms.
— Iydia Ding, BTW reporter

What happened

Asian industry groups including Google, Meta and X have urged Malaysia in an open letter to suspend a plan to require social media services to apply for licences, citing a lack of clarity in the proposed regulations. However, the letter from the Asian Internet Consortium (AIC) was removed from its website yesterday evening, with consortium member Grab saying in a separate statement that it had not been informed or consulted about the letter, adding that the government’s plans would not affect its operations.

In July, Malaysia’s communications regulator said social media platforms with more than 8 million users in the country would start applying for licences from this month as part of a campaign against cybercrime. The regulator said it could take legal action against the platforms if they fail to apply for licences by 1 January 2025.

In response, the AIC said it agreed with the government’s determination to address cyber hazards, but the proposed timeline for implementation left the industry without sufficient clarity and time to assess its impact. There has been no formal public consultation on the plan, leading to industry uncertainty over the scope of the obligations social media platforms will be subject to.

Also read: Web Impian’s Mail Niaga: Streamlining MSME email marketing in Malaysia

Also read: Alibaba Cloud empowers rural Malaysia with digital education

Why it’s important

For now, Malaysia’s communications ministry declined to comment on the letter, and the prime minister’s office did not respond to a request for comment.

A government report earlier this year had claimed a sharp increase in harmful content on social media and urged social media companies, including Meta and short-form video platform TikTok, to step up monitoring of their platforms. In a letter to Malaysian Prime Minister Anwar Ibrahim on Friday, AIC insisted that the proposed licensing regime was “unworkable” for the industry and could stifle innovation by placing undue burdens on businesses.

The proposed regulations may hamper Malaysia’s growing digital economy, but it is imperative to keep a lid on the rapidly growing social media. The move demonstrates the Malaysian government’s determination to address online hazards, but the proposed implementation timeline leaves companies in the sector without sufficient clarity and time to assess its impact. Both sides should cooperate and work together to promote the stable development of social media platforms.