A Malaysian minister has said that major tech companies must comply with local laws to continue operating in Malaysia after an industry group urged the government to pause a plan to require social media platforms to apply for a regulatory license.
TakeAway Points:
- A Malaysian minister stated that major digital corporations must comply with local laws to continue functioning in Malaysia.
- Tech behemoths Google, Meta, and X are among the members of the Asia Internet Coalition (AIC), who made the request in an open letter to Malaysian Prime Minister Anwar Ibrahim, noting ambiguity in the proposed legislation.
- Malaysia plans that social media platforms and messaging services with more than eight million users will be required to obtain a license and can face legal action if they fail to do so by January 1, 2025.
Malaysian law stands for all tech firms
The Asia Internet Coalition (AIC), whose members include tech giants Google, Meta, and X, made the call in an open letter to Malaysian Prime Minister Anwar Ibrahim, citing a lack of clarity over the proposed regulations.
Communications Minister Fahmi Fadzil said the government was ready to discuss with the AIC and other industry groups the proposed regulations but had no plans to delay their implementation, aimed at tackling rising cybercrime.
Under the plan, social media platforms and messaging services with more than eight million users will be required to obtain a license and can face legal action if they fail to do so by January 1, 2025.
“Big tech companies are big but our laws are bigger. If they want to operate in Malaysia, they must respect and comply with our laws,” Fahmi told reporters, adding earlier engagements with representatives of social media firms on the plan had been positive.
The AIC letter, originally dated Aug. 23, was taken down from its website late on Monday. Ride-hailing firm Grab, also a member of the group, said separately on the same day that it had not been consulted on the letter’s contents.
A new version of the letter, dated Aug. 26, was later posted to AIC’s website with several sentences removed, including a reference to the government’s plan being “unworkable” for the industry.
The letter also removed a list of the AIC’s member companies, which remains available on the group’s website.
Malaysia’s drive to combat cybercrime
In July, Malaysia’s communications regulator said social media platforms with more than eight million users in the country would be required to apply for a license starting this month as part of a drive to combat cybercrime.
Legal action could be taken against the platforms if they fail to do so by January 1, 2025, the regulator said.
In the letter dated Friday and addressed to Malaysian Prime Minister Anwar Ibrahim, the AIC, whose members also include Apple Inc. and Amazon, said the proposed licensing regime was “unworkable” for the industry and could stifle innovation by placing undue burdens on businesses.
The group said there had been no formal public consultations on the plan, leading to industry uncertainty regarding the scope of obligations to be imposed on social media platforms.
“No platform can be expected to register under these conditions,” AIC Managing Director Jeff Paine wrote in the letter posted on the group’s website.
Malaysia’s communications ministry declined to comment on the letter. The prime minister’s office did not respond to a request for comment.
The AIC also expressed concern that the proposed regulations could hamper Malaysia’s growing digital economy, which has attracted significant investments this year.
The group said it shared the government’s commitment to addressing online harm, but the proposed implementation timeline left the industry with insufficient clarity and time to assess its implications.
The government reported a sharp increase in harmful social media content earlier this year and urged social media firms, including Meta and short video platform TikTok , to step up monitoring on their platforms.
