Popular social media and OTT messaging services in Malaysia will have to apply for a class licence under a new framework to be introduced by the Malaysian Communications and Multimedia Commission (MCMC) this week.
According to a statement released by the MCMC on Saturday, a new regulatory framework to combat cybercrime will be introduced on August 1. Under the framework, social media and OTT messaging services with over 8 million registered users must apply for a class licence for application service providers.
That would cover big-name international social media platforms such as Facebook, Instagram, YouTube, TikTok and X (formerly known as Twitter), as well as messaging services like WhatsApp, WeChat and Telegram.
Up to now, social media and messaging service providers have been exempt from licensing requirements based on the Communications and Multimedia (Licensing) (Exemption) Order 2000.
However, the Malaysian government has proposed licences for social media platforms since late last year over concerns about the rise of scams, online gambling, cyberbullying and deepfake videos of celebrities and public figures promoting fraudulent investment schemes, among other things. A licencing scheme would allow the government to impose conditions on social media platforms regarding content moderation, and give it leverage to enforce compliance.
The MCMC said the new regulatory framework “is in line with the Malaysian Cabinet's decision that social media services and internet messaging services must comply with Malaysian laws, to combat the rise in cybercrime offences including scams and online fraud, cyberbullying, and sexual crimes against children.”
Last week, Communications Minister Fahmi Fadzil claimed that losses from online scams on Facebook alone were between MYR8 million (US$1.7 million) and MYR132 million in the first half of 2024.
According to the Straits Times, when the licencing scheme was first proposed last year, the government also said the scheme would facilitate revenue sharing between social media platforms and local content producers, including news media. However, subsequent hearings on the proposal this year have barely mentioned the revenue sharing angle, focusing more on taking down illegal and “harmful” content.
The MCMC’s announcement on Saturday didn’t offer details on the framework apart from the licencing requirement. But the Straits Times report said that potential provisions on the table include a “kill switch” to remove content, mandatory government audits of content moderation and algorithm processes, and “pre-emptive action to prevent offences”. Licencees may also be required to set up a local office, which would enable them to be prosecuted under other local laws governing internet content and fraud.
Not unexpectedly, social media companies and civil society have expressed concerns about giving the government too much control over content on such platforms, which they say would also increase the risk of the government potentially abusing the framework for political purposes, the report said.
The rules are slated to take effect at the start of 2025. Social media and messaging service providers who fail to obtain a licence could be prosecuted under the Communications and Multimedia Act 1998, the MCMC said.
“This measure will create a safer online ecosystem and a better user experience, especially for children and families,” the MCMC statement said.