The new social media licensing framework that Malaysia implemented on January 1 via legal amendments marks a significant regulatory shift in the country’s digital landscape. This initiative mandates that social media platforms with more than 8 million users in Malaysia obtain an Applications Service Provider Class Licence. The government views this move as necessary to curb harmful online content, safeguard user privacy and hold platforms accountable for the material they host.
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Previously, social media and internet-messaging providers were exempt from licensing requirements under the Communications and Multimedia (Licensing) (Exemption) Order 2000. This new framework, in mandating licences for platforms that meet the user threshold, signals a departure from that hands-off approach. While the licensing goals appear to promote proactive digital governance, the framework has sparked debate over its potential impact on freedom of expression, fairness and feasibility of implementation.
The feeble parliamentary vote of December 9, which saw 59 MPs supporting the legislative amendment, 40 opposing, and one abstaining – with 122 MPs absent from the Dewan Rakyat – underscored the contentious nature of the policy and reflected divisions even within the ruling coalition.
The Malaysian Communications and Multimedia Commission (MCMC), which is responsible for implementing the policy, has stressed that platform self-regulation has been inadequate in mitigating rising digital threats in Malaysia. For instance, during the 2022 general election, racially charged content spread widely across social media, posing significant challenges in a diverse society like Malaysia.
The licensing requirements introduced through revisions to Section 211(c) of the Communications and Multimedia Act 1998 shift the responsibility for managing harmful content from individuals to the platforms themselves. These amendments replace the term “person” with “content application service provider” and significantly increase the maximum fine from 50,000 ringgit (US$11,200) to 1 million ringgit (US$224,000). However, while these amendments can be enforced independently, the licensing requirement introduces broader regulatory control, raising concerns about potential government overreach and its resemblance to past restrictive media laws.
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Social media companies are now required to moderate content, prevent the spread of illegal material, and take proactive measures against harmful accounts. Stricter data protection rules have also been introduced to address privacy breaches and misuse of personal information. A key provision of the framework also requires licensed platforms to contribute 6 per cent of their Malaysian revenue to the Universal Service Provision Fund, an initiative to expand internet access in underserved communities.