Malaysia’s Communications Minister Fahmi Fadzil has warned tech firms to comply with the government’s new licensing regime or face potential fines of up to RM500,000. This warning comes in response to a coalition of tech companies issuing an open letter urging the government to reconsider the regime, which will require social media and messaging platforms with over 8 million users to obtain an annual operating license. The Asia Internet Coalition has also criticized the regime, stating that it will hinder innovation and place undue burdens on businesses.
Civil society organizations like Malaysia’s Centre for Independent Journalism have raised concerns that the proposed regime could stifle free speech and government criticism. Minister Fahmi has stressed that the enforcement of the regime, set to begin on Jan 1 2025, will not be delayed. Citing recent examples in the United Kingdom and France, Fahmi stated that the Malaysian government is determined to step up regulation of tech companies. In the UK, social media misinformation led to unrest and riots, while the founder of messaging app Telegram was arrested in France as part of an investigation into criminal activity on the platform.
Fahmi has noted positive discussions with tech companies regarding the new regime, stating that the government is open to considering their views. The Asian Internet Coalition has expressed concerns about the lack of industry engagement and a clear roadmap for the regime. It raised issues related to criminal liability for licensed service providers, stringent content moderation obligations, and a short grace period for compliance. The Malaysian Communications and Multimedia Commission stated that it has engaged with various stakeholders to ensure that the final framework is fair and effective.
The AIC has issued multiple versions of its open letter, with the latest version omitting references to the licensing regime being unworkable for the industry. Regional super-app Grab, a member of AIC, has distanced itself from the initial version of the letter, stating that the regulation would not impact its operations as it focuses on ride-hailing and food delivery. Following discussions with AIC and other stakeholders, the government continues to advocate for a regulatory framework to ensure a safer internet environment for Malaysian citizens, particularly children and families.
Mr Fahmi has acknowledged the discrepancies in the AIC’s letters and Grab’s statement, noting that there is still room for discussion on the licensing regime. He has stressed the need for tech companies to respect and comply with Malaysian laws if they wish to operate in the country. The government is open to engaging with tech companies and other stakeholders to address concerns and ensure that the regulatory framework meets the needs of both the industry and the public. The Malaysian government remains committed to implementing the licensing regime to safeguard internet safety for its citizens.
