27-8-2024 (KUALA LUMPUR) A consortium of leading technology companies has called on the Malaysian government to pause its controversial plan requiring social media platforms to obtain operating licences. The Asia Internet Coalition (AIC), representing industry heavyweights such as Google, Meta, and X, voiced concerns over the lack of clarity surrounding the proposed regulations in an open letter to Prime Minister Anwar Ibrahim.
The Malaysian Communications and Multimedia Commission announced in July that social media services with more than eight million users in the country would be required to apply for licences starting this month. The move is part of a broader initiative to combat cybercrime, with the regulator warning of potential legal action against non-compliant platforms after 1 January 2025.
In the letter, dated last Friday, the AIC described the proposed licensing regime as “unworkable” for the industry, suggesting it could stifle innovation by placing undue burdens on businesses. The coalition highlighted the absence of formal public consultations, leading to widespread uncertainty regarding the scope of obligations to be imposed on social media platforms.
“No platform can be expected to register under these conditions,” wrote AIC Managing Director Jeff Paine in the letter, which was briefly available on the group’s website before being removed late Monday for reasons yet to be clarified.
The AIC, whose membership also includes tech giants Apple and Amazon, expressed concern that the proposed regulations could impede Malaysia’s burgeoning digital economy, which has attracted significant investments this year. While acknowledging the government’s commitment to addressing online harms, the group argued that the proposed implementation timeline provides insufficient clarity and time for the industry to assess its implications fully.
Interestingly, Grab, a member of the coalition, distanced itself from the letter in a separate statement, claiming it had not been informed or consulted about the missive. The ride-hailing and delivery company added that the government’s plan does not impact its operations.
The Malaysian government reported a sharp increase in harmful social media content earlier this year, prompting calls for platforms like Meta and TikTok to enhance their content monitoring efforts. However, the AIC’s letter suggests that the proposed licensing scheme may be an overly broad approach to addressing these concerns.
