Malaysia’s Social Media Licence Plan Faces Opposition From Tech Giants

The Asia Internet Coalition has described the proposed licensing regime as "unworkable" for the industry, stating it could hinder innovation by imposing excessive burdens on businesses.

An Asian industry group, which includes tech giants such as Google, Meta, and X (formerly known as Twitter), has urged the Malaysian government to halt its plan to mandate social media services to apply for a licence. The group cited a lack of clarity over the proposed regulations as a primary concern.

In July, Malaysia’s communications regulator announced that social media platforms with over eight million users in the country would need to apply for a licence starting this month, according to Reuters.

This move is part of a broader effort to combat cybercrime. The regulator warned that legal action could be taken against platforms that fail to comply by 1 January 2025.

The Asia Internet Coalition (AIC)—which also includes Apple, Amazon, and Grab—addressed Malaysian Prime Minister Anwar Ibrahim, describing the proposed licensing regime as “unworkable” for the industry. The AIC warned that the plan could stifle innovation by imposing undue burdens on businesses.

The group highlighted the absence of formal public consultations on the plan, which has led to uncertainty within the industry regarding the scope of obligations that would be imposed on social media platforms. “No platform can be expected to register under these conditions,” wrote AIC Managing Director Jeff Paine.

The AIC also expressed concerns that the proposed regulations could hinder Malaysia’s burgeoning digital economy, which has attracted significant investments this year.

While the group acknowledged the government’s commitment to addressing online harms, it argued that the proposed implementation timeline left the industry with insufficient clarity and time to assess the implications.

The coalition emphasised the need for a more collaborative approach, suggesting that meaningful engagement with the industry is essential to develop a workable solution that balances regulatory goals with the need to foster innovation and economic growth.

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