The Malaysian Communications and Multimedia Commission (MCMC) has announced that a new regulatory framework for Internet messaging and social media services will come into effect on 1 January 2025.
This framework aims to address the rising cases of cybercrime, including online fraud, gambling, cyberbullying, and sexual crimes against children.
According to MCMC, all Internet messaging and social media service providers with at least eight million users in Malaysia must apply for an Applications Service Provider Class Licence under the Communications and Multimedia Act 1998 (Act 588).
Operating without a licence after this period will be considered an offence, and legal action will be taken against non-compliant service providers.
A grace period from 1 August 2024, to 31 December 2024, has been established to allow service providers to comply with the new regulations.
During this time, MCMC will develop comprehensive guidelines outlining the conduct requirements and responsibilities for service providers in Malaysia.
The proposed guidelines will include robust measures for user data protection, age assurance to restrict users under 13 years old from accessing the platforms, addressing online harm, and enhancing content moderation.
Additionally, service providers will be required to simplify user complaint procedures, reduce response times, and manage deepfakes and harmful content generated by Artificial Intelligence (AI).
MCMC will conduct a public consultation to develop these guidelines, inviting feedback from all stakeholders, including civil society organisations (CSOs), non-governmental organisations (NGOs), service providers, and the public.
MCMC emphasised that the new regulatory framework will not impact end users of the specified service providers.
Only the service providers, such as Facebook, Facebook Messenger, Instagram, Telegram, TikTok, WeChat, WhatsApp, X (formerly Twitter), and YouTube, are required to obtain a licence from MCMC if they meet the licencing criteria.
“Users, on the other hand, will benefit from enhanced security features and an improved user experience due to the service providers’ proactive compliance with Malaysian laws. They can expect a safer online environment and clearer channels for lodging complaints about online harm,” MCMC stated.
Local incorporation mandate for social media and internet messaging companies seeking licences
As per the regulatory framework’s FAQ, social media and internet messaging service providers are required to establish a locally-incorporated entity before applying for a licence.
However, this requirement may be waived for foreign companies at the discretion of the Communications Minister, who can grant exemptions on a case-by-case basis.
Any companies caught operating without a license, if convicted, shall be liable to a fine not exceeding RM500,000 or five years imprisonment, or both.
Additionally, they will be subject to an extra fine of RM1,000 for each day, or part thereof, that the offense persists following conviction.
Social media licence is a “dictatorial” move
Some prominent lawyers, including Datuk Ambiga Sreenevasan, have criticised the government’s implementation of the licence and a “kill switch”, with Ambiga herself saying that this is “the most dictatorial government we have ever had”.
The kill switch would allow the government to take down any social media contents that they don’t want the public to see.
