- The Malaysian government has demanded that tech companies must comply with Malaysian law after strong opposition to a social media licensing scheme.
- The government says it is ready to discuss the proposed regulations with the AIC and other industry groups, but has no plans to delay their implementation, aimed at tackling rising cybercrime.
OUR TAKE
The proposed regulation may hamper Malaysia’s growing digital economy, but it is imperative to control the fast-growing social media.This move demonstrates the Malaysian government’s determination to address online hazards, and while AIC remains sceptical about the consequences, both parties should continue to work together to create a safe and stable online environment.
— Iydia Ding, BTW reporter
What happened
The Asian Internet Consortium (AIC), which includes Google, Meta and X, 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 on Tuesday. In response, the Malaysian government has demanded that tech companies comply with Malaysian law. Under the plan, social media platforms and messaging services with more than eight million users would be required to obtain a licence and could face legal action if they fail to do so by 1 January 2025, the AIC said.
Communications Minister Fahmi Fadzil said tech companies must comply with local laws to continue operating in Malaysia, and that the government was ready to discuss the proposed regulations with the AIC and other industry groups, but had no plans to delay implementation of the regulations, which are aimed at tackling rising cybercrime. The AIC’s letter, which was originally dated 23 August, was removed from its website late on Monday. Online taxi company Grab, also a member of the group, separately said on the same day that it had not been consulted about the letter.
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Why it’s important
In a statement this week, Malaysia’s communications regulator said it will conduct a public inquiry and is seeking feedback from industry participants and the public on the regulation. A new version of the letter, dated 26 August and later posted on the AIC’s website, referred to concerns about possible unintended consequences of regulatory licensing.Several sentences were removed, including a reference to the government’s plan being “unworkable” for the industry. The letter also removed a list of AIC member companies, which is still available on the organisation’s website.
The proposed regulations could hamper Malaysia’s growing digital economy, but it is imperative to keep a lid on the rapidly growing social media. Frequent social media security incidents in recent years have drawn the attention of governments, and this move demonstrates the Malaysian government’s determination to address cyber hazards, and while AIC remains sceptical about the consequences, both parties should continue to work together in a collaborative endeavour to create a safe and stable online environment.
