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New social media licensing regulations spark furore in Malaysia

Malaysia’s new mandate requiring the licencing of social media and instant messaging platforms with over eight million users has divided opinion.

Malaysia’s decision to mandate a licensing requirement for social media and instant messaging platforms has sparked a debate between creating a safer digital environment, and the need to uphold freedom of expression.

It is common knowledge that some of these platforms are used to carry out illegal businesses and transactions – from escort services to the leaking of private data.

There have also been criticisms against politicians, and mounting attacks, mainly on Telegram and X, against the royal families.

At 3pm today the government published Frequently Asked Questions on the new regulatory framework.

The new ruling comes six months after Communications Minister Fahmi Fadzil made public the government’s intention to license social media and instant messaging platforms.

Some believed that the public relations messaging regarding the issue could have been better handled, fuelling speculation that the decision-makers were pressured into making the call.

Fahmi said the cyberbullying that led to social media influencer A. Rajeswary, 29, allegedly taking her own life last month triggered “this slew of rethinking about social media platforms and online messaging systems”.

Supporters of the new licensing requirement said this should have been done long ago, and would be the first step in ensuring that tech giants were held accountable for what is posted on their respective platforms. Critics however, argued that the licensing was uncalled for, and was being pushed, ironically, by those who had used such platforms to win the 15th General Election in 2022.

Under the new requirement, social media and online messaging platforms with a minimum of eight million users are required to apply for a Class Application Service Licence under the Communications and Multimedia Act 1998, from today.

Failure to do so by Jan 1, 2025, is an offence, and companies face fines, jail time, or suspension under Section 126 of the Communications and Multimedia Act.

Twentytwo13 takes a look at what the supporters and naysayers have to say.

What is the Communications and Multimedia Act 1998?
The Communications and Multimedia Act 1998 regulates telecommunications, broadcasting, and the multimedia industries. The Malaysian Communications and Multimedia Commission (MCMC) oversees and enforces the Act. Key aspects include licensing requirements for service providers, measures to promote competition, content regulation, consumer protection, and support for infrastructure development. The Act is to ensure the orderly growth and advancement of the communications sector while balancing regulation and innovation.

What are the penalties under Section 126 of the Act?
Upon conviction, a person is liable to a fine not exceeding RM500,000 or imprisonment for a term not exceeding five years or both, and shall also be liable to a further fine of RM1,000 for every day or part of a day during which the offence continues after conviction.

Will users and influencers have to apply for a licence?
No. MCMC said the new regulatory framework only applies to social media platforms and messaging platforms.

Why the need for a licence?
According to MCMC, the decision is to ensure the platforms comply with Malaysian laws and to combat cybercrimes like scams, online fraud, cyberbullying, and sexual crimes against children.

It said that between January 2020 and October 2023, RM3.2 billion was lost to online scams, and it received 3,419 hate speech complaints.

Why now?
The government had been working on this for some time, but Fahmi said Rajeswary’s death on July 5 in Kuala Lumpur forced the government’s hands to mandate a licensing requirement. A day earlier, she had filed a police report against two people for allegedly harassing her on TikTok.

What about freedom of expression?
Prime Minister Datuk Seri Anwar Ibrahim promised that the new law would not curb freedom of speech, saying that Malaysia was a democratic country, and people could voice their views, whether they agreed, or opposed the government.

What do the critics say?
Lawyers for Liberty director, Zaid Malik said the licensing scheme was similar to the Printing Presses and Publication Act 1984 (PPPA), which had been used for decades to regulate print media. It had also been used to shut down newspapers in the past.

The draconian law is still in force under the Pakatan Harapan-led government despite its previous promises to repeal the PPPA.

Lawyer and former Bersih chairman Datuk S. Ambiga claimed the new licensing requirement and the lack of reforms made the Anwar administration the “most dictatorial government”.

Another lawyer, and former Malaysian Anti-Corruption Commission chief Latheefa Koya echoed Ambiga’s views, when she posted on X: “Madani Govt certainly IS dictatorial. Highest TikTok takedown requests in d world. Drastic drop in press freedom index. Dropping Zahid’s corruption case. Using draconian Sedition Act, s 233 CMA, PAA against govt critics. Weaponising MACC etc. The list is too long 4 this tweet.”

Former DAP lawmaker Ong Kian Meng also asked if Malaysia would ban Meta, the owner of Facebook and Instagram, if it did not apply for a licence.

Fahmi, in responding to Ambiga’s comments, said today that she needed to review history and look at the conduct of the previous governments that saw demonstrators being beaten by police, and the use of tear gas and water cannons. In 1987, Operation Lalang saw police cracking down on the media, arresting over 100 people, including opposition politicians, and holding them without trial, under the Internal Security Act.

“Her statement is hyperbolic. It does not reflect reality,” said Fahmi.

Do other countries regulate social media platforms?
Singapore (Protection from Online Falsehoods and Manipulation Act) and the United Kingdom (online safety law) have regulatory frameworks for online safety, but platforms don’t need to apply for a licence. The European Union has the Digital Services Act to prevent illegal and harmful activities online and the spread of disinformation