Malaysia’s social media platforms required to obtain licence

The Malaysian Communications and Multimedia Commission (MCMC) has announced that all social media and Internet messaging services with at least eight million registered users in Malaysia must apply for an applications service provider class licence under the Communications and Multimedia Act 1998 (Act 588).

This requirement, which will take effect on January 1, 2025, follows the introduction of a new regulatory framework for social media services and Internet messaging, introduced earlier this month.

According to cybersecurity expert Associate Prof Dr M. Selvakumar from Universiti Sains Malaysia (USM), the government’s decision aims to curb criminal activities such as fraud and online gambling, which often exploit these platforms to target victims.

The requirement will enable the MCMC to enhance its oversight and ensure that social media platforms actively work to prevent illegal activities.

M. Selvakumar said with a licencing system in place, all social media services will need to adhere to national laws, providing users with a more effective reporting mechanism for suspicious activities like online gambling and fraud.

He added that the move demonstrates Malaysia’s commitment to tackling the growing threat of cybercrime, particularly in areas such as fraud and online gambling.

However, it is important to understand that licencing alone is not sufficient, he said, adding that it should be part of a comprehensive strategy that includes robust enforcement, collaboration across sectors and a flexible framework that adapts to the evolving technological landscape.

Earlier, M. Kulasegaran, Deputy Minister in the Prime Minister’s Department in charge of law and institutional reform, reported that nearly 14,500 cases of online fraud were recorded from January to June 15 last year, which caused a total losses exceeding RM 581 million (over $130 million).