PUTRAJAYA: Major tech companies, including Google and X, have not yet applied for a new class license in Malaysia under a regulatory framework that came into force on January 1.
This licensing framework, introduced in July of last year, aims to safeguard the public from potential online risks. Platforms with over eight million registered users in Malaysia are required to comply with the policy.
The Malaysian Communications and Multimedia Commission (MCMC) reported that Google, which operates YouTube, had raised concerns regarding how YouTube’s video-sharing features are classified under the framework.
“MCMC has carefully considered these concerns and will ensure that YouTube and all other qualifying platforms fulfill their obligations under the licensing framework,” the commission stated.
Meanwhile, X claimed its user base in Malaysia has not reached the eight million threshold. MCMC is currently reviewing X’s user data and will continue discussions to verify its status.
Elsewhere, four other prominent platforms have made significant progress in meeting the licensing requirements. Tencent, which operates WeChat, became the first provider to secure the Application Service Provider Class license, followed by TikTok, owned by ByteDance.
Telegram is nearing the final stages of obtaining its license, while Meta, the parent company of Facebook, Instagram, and WhatsApp, has begun the application process and is expected to finalize it soon.
MCMC emphasized that it would monitor non-compliant platforms and consider appropriate actions under the Communications and Multimedia Act 1998. Platforms failing to secure the necessary license could face penalties, including fines of up to RM500,000 (US$111,600), imprisonment of up to five years, and additional fines of RM1,000 for each day of non-compliance.
Communications Minister Fahmi Fadzil assured that Malaysia does not intend to ban social media platforms, highlighting the value they bring to the nation as a growing market.
This regulatory push comes in the wake of the tragic death of Rajeswary Appahu, a 30-year-old social media influencer known as Esha, who was found dead on July 5 after reporting harassment on TikTok. Her case led the government to re-evaluate its stance on online service providers, particularly in addressing cyberbullying.
According to World Population Review, WeChat has around 12 million users in Malaysia. Data from Kepios indicates that as of early 2024, YouTube had 24.1 million users, TikTok had 28.68 million users aged 18 and older, Facebook had 22.35 million users, and X had 5.71 million users.
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