Malaysia’s Communications Minister Fahmi Fadzil issued a warning to tech firms to comply with the government’s licensing regime if they want to continue operating in the country. This statement followed a coalition of tech companies issuing an open letter to Malaysian Prime Minister Anwar Ibrahim, urging the government to reconsider the licensing regime. The new framework requires social media and messaging platforms with over 8 million users to obtain an annual operating license, with non-compliance potentially resulting in fines of up to RM500,000 (US$115,000).
The Asia Internet Coalition (AIC), a trade association representing tech companies such as Meta, Google, Amazon, and Apple, criticized the licensing regime for hindering innovation and placing undue burdens on businesses. Civil society organizations also expressed concerns that the proposed regime could stifle free speech and government criticism. Despite these criticisms, Mr. Fahmi stressed that enforcement of the regime, scheduled to kick off on Jan 1, 2025, will not be delayed. He highlighted recent examples from the United Kingdom and France as reasons supporting the government’s decision to regulate tech companies.
In response to criticism, Mr. Fahmi said that tech companies must respect and comply with Malaysian laws to operate in the country. He mentioned that a meeting with tech companies in Singapore was positive, indicating their readiness to discuss the matter further. The AIC raised concerns about the licensing regime, including criminal liability for representatives of licensed service providers and stringent content moderation obligations. A five-month grace period for compliance was also deemed insufficient. The AIC emphasized the importance of industry engagement and a clear roadmap before implementing the regime.
The Malaysian Communications and Multimedia Commission (MCMC) stated that it had engaged with various stakeholders, including service providers, civil society organizations, and law enforcement agencies, to ensure a fair and effective final framework. Despite the AIC releasing multiple versions of their open letter, Mr. Fahmi continued to offer opportunities for discussions with tech companies regarding the licensing regime. He acknowledged the strangeness of the situation, especially with Grab, one of the AIC members, issuing a statement distancing itself from the letter. However, Mr. Fahmi reiterated the importance of regulatory frameworks for social media platforms and messaging applications to ensure a safer internet for Malaysian citizens.
In conclusion, the Malaysian government’s stance remains firm on imposing a regulatory framework on social media platforms and messaging applications to create a safer online environment, particularly for children and families. Despite criticism from tech companies and civil society organizations, the government asserts the need for compliance with Malaysian laws for tech firms operating in the country. Discussions with tech companies and stakeholders continue to address concerns raised about the licensing regime and its potential impact on innovation, free speech, and business operations. The government is open to dialogue and feedback to ensure the final framework is fair, effective, and reflective of industry and public needs.
