“The Fight for Compliance: Will Social Media Platforms Bow to Malaysia’s New Regulations?”

Source: SAYS

Meta, TikTok, Google, and other major platforms could face a ban in Malaysia if they don’t apply for a new social media licence with the government.

Starting August 1, any social media or online messaging platform with at least eight million users in Malaysia must apply for this government licence. The Malaysian Communications and Multimedia Commission (MCMC) introduced these rules to create a safer online space.

Licensing Enforcement and Penalties

From January 1, 2025, the MCMC will enforce these licensing requirements. Platforms that don’t comply by then could face legal action under the Communications and Multimedia Act, and they may be banned from operating in Malaysia. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi stated that banning non-compliant platforms is within MCMC’s authority.

Clarifying Concerns and Motivations

Though some suspect political motives behind the new regulations, Zahid dismissed these concerns, emphasizing that responsible social media use is key. He noted that other countries, like China and Singapore, have their own ways of regulating social media, ensuring user accountability.

Addressing Online Safety Issues

The rise in fraud, scams, cyberbullying, and inappropriate content, especially targeting children, has pushed Malaysia to take a tougher stance on social media platforms. Communications Minister Fahmi Fadzil pointed out varying compliance rates among platforms: Instagram leads with 88%, while X (formerly Twitter) trails with just 25%, allowing unchecked adult content and cyberbullying.

Despite Facebook’s high compliance, fraud cases remain high, with MCMC receiving nearly 100,000 complaints in 2024 alone. Scammers increasingly target well-educated and high-income Malaysians.

Impact on Businesses and Alternatives

With over 28.68 million active social media users, or 83% of the population, many Malaysian businesses rely heavily on these platforms for marketing and sales. A potential ban on these platforms could force businesses to find alternative marketing channels.

Local media outlets, such as newspapers, radio, and TV, might benefit if international platforms are banned. Fahmi previously mentioned that local media companies lose about RM2 billion annually due to competition from platforms like Meta, Google, and TikTok. He suggested a balanced approach to ensure a fairer media landscape.