On August 1, the Malaysian Communications and Multimedia Commission (MCMC) announced a new regulatory framework requiring social media and internet messaging service platforms to obtain licenses was gazetted as part of a broader effort to combat the rise in cybercrimes, including online fraud, gambling, cyberbullying, and sexual crimes against children. However, complex regulatory requirements and high compliance costs have raised concerns that the new requirements may inadvertently stifle innovation, investment, and freedom of expression.
Under the new framework, social media and internet messaging service platforms with at least 8 million users are required to apply for an applications service provider class (ASP(C)) license, leading to additional obligations under the Communications and Multimedia Act 1998 (CMA) and its subsidiary legislation, Personal Data Protection Act 2010, and other relevant codes. Notably, foreign service providers are required to incorporate a local entity to apply for an ASP(C) licensee unless permitted by the Minister of Communications to be registered as a class licensee. Failure to comply with the licensing requirement may lead to fines of up to RM500,000 (US$121,400) and/or imprisonment for a term up to 5 years.
The new framework will go into effect on January 1, 2025. Following the introduction of the new licensing regulation, MCMC intends to develop comprehensive guidelines in consultation with affected stakeholders to outline the expected conduct requirements, including data protection measures, age assurance preventing access by children under 13, and management of deepfake and other harmful AI-generated content.
