Malaysia’s Tech Regulations Move Forward Despite Industry Concerns

Tech companies must adhere to Malaysian regulations if they wish to continue their operations in the country, Malaysia’s Communications Minister Fahmi Fadzil asserted on Tuesday. This statement came after an industry group, the Asia Internet Coalition (AIC), called on the government to halt a planned requirement for social media platforms to obtain a regulatory license.

The AIC, which counts major companies like Google, Meta, and X among its members, had issued an open letter to Malaysia Prime Minister Anwar Ibrahim, raising concerns about the proposed tech regulations. The group highlighted a lack of clarity surrounding the new rules, which are designed to combat the growing issue of cybercrime. According to Reuters, the letter urged the government to reconsider the timeline for implementing these regulations.

Despite the AIC’s concerns, Minister Fahmi Fadzil stated that the government is open to discussions with the coalition and other industry stakeholders but has no intention of delaying the regulations. “Big tech companies are big but our laws are bigger. If they want to operate in Malaysia, they must respect and comply with our laws,” Fahmi emphasized to reporters. He also mentioned that earlier dialogues with social media firms regarding the plan had been constructive.

Related: Malaysia Introduces New Licensing Requirement for Digital Platforms

Under the new tech regulations, social media platforms and messaging services with more than eight million users will need to secure a license in Malaysia by January 1, 2025. Failure to do so could result in legal consequences. Per Reuters, the AIC had initially criticized the plan as “unworkable” for the industry, but this language was later removed from a revised version of the letter, which was posted on the coalition’s website on August 26.

In the updated letter, the AIC omitted several sentences, including the reference to the regulations being impractical. Additionally, a list of the AIC’s member companies, which was initially included, was also removed from the letter but remains accessible on the group’s website. Notably, ride-hailing giant Grab, also a member of the AIC, disclosed that it had not been consulted on the letter’s contents.

On Tuesday, Malaysia’s communications regulator announced plans to conduct a public inquiry and seek feedback from both industry players and the public regarding the new regulations. The AIC had previously expressed that the lack of formal public consultations had led to uncertainty within the industry and raised concerns about potential unintended consequences from the regulatory requirements, according to Reuters.

Source: Reuters