Malaysia’s Communications Minister Fahmi Fadzil warned tech firms to comply with the government’s licensing regime to continue operating in the country. This warning follows a coalition of tech companies issuing an open letter to Prime Minister Anwar Ibrahim urging the government to reconsider the licensing requirements. The new framework mandates social media and messaging platforms with over 8 million users to obtain an annual operating licence, with potential fines of up to RM500,000 for non-compliance.
The Asia Internet Coalition (AIC), whose members include Meta, Google, Amazon, and Apple, criticized the regime for hindering innovation, increasing compliance costs, and deterring future investments. Civil society organisations like Malaysia’s Centre for Independent Journalism also expressed concerns that the regime could impede free speech and government criticism. However, Minister Fahmi stressed that enforcement of the regime, planned to start on Jan 1, 2025, will not be delayed, despite opposition.
Fahmi cited examples from the UK and France to justify Malaysia’s decision to regulate tech companies. In the UK, social media misinformation on immigrants led to unrest and riots, while in France, the founder of messaging app Telegram was arrested on charges related to child pornography and drug trafficking. Fahmi emphasized that the government’s laws are to be respected by tech giants operating in Malaysia. He mentioned positive discussions with tech firms about the licensing regime, indicating openness to dialogue.
The AIC raised concerns about the new licensing regime, including criminal liability for representatives of licensed service providers and the tight compliance deadline. The requirement for content approval by the Department of Islamic Development Malaysia also raised questions about religious content moderation. The Malaysian Communications and Multimedia Commission stated that it had engaged with various stakeholders, including service providers, civil society organisations, and law enforcement agencies, to ensure a fair and effective regulatory framework.
Despite Grab distancing itself from the AIC letter and the multiple versions released by the coalition, Minister Fahmi continues to advocate for industry engagement and dialogue. He highlighted the importance of ensuring a safer internet for Malaysian citizens, especially children and families. The government is committed to implementing the licensing regime as planned, despite pushback from tech companies and civil society. Mr Fahmi remains open to further discussions to address concerns and reach a consensus with all stakeholders involved.
