In brief

The Malaysian Communications and Multimedia Commission (“MCMC“) has announced its intention to introduce a new licensing regime for social media services and internet messaging services on 1 August 2024, with enforcement effective from 1 January 2025 onwards.

In more detail

On 27 July 2024, the MCMC announced its intention to introduce a new licensing regime for social media services and internet messaging services.

Under the current licensing framework, social media services and internet messaging services are exempted from the licensing requirement under the Communications and Multimedia Act 1998 (“CMA“) pursuant to the Communications and Multimedia (Licensing) (Exemption) Order 2000.

However, from 1 August 2024, all social media and internet messaging service platforms with at least 8 million users will be required to apply for an applications service provider class licence (“ASP(C) Licence“) pursuant to the CMA.

Failure to comply with the licensing requirement under the CMA is an offence, and upon conviction, the offender may be liable to fines up to RM500,000 and/or imprisonment for a term up to 5 years as well as a further fine of RM1,000 for every day or part of a day during which the offence is continued after conviction. Additionally, where the offence is committed by a body corporate, there is also a rebuttable presumption that a person who is a director, officer, concerned with the management of its affairs, etc. may be deemed to have committed the offence.

The enforcement of the new licensing regime will be effective from 1 January 2025 onwards.

In a statement, MCMC said that the new licensing framework is in line with the Malaysian Cabinet’s decision that social media services and internet messaging services must adhere to Malaysian laws to combat the rise in cybercrimes such as online scams and fraud, cyberbullying and sexual crimes against children.

Concluding remarks

With the introduction of the new licensing regime for social media and internet messaging service platforms, it remains crucial for the Malaysian government to strike the right balance between protecting online users and avoiding excessive regulation.   

Additionally, clarity as to the application of the new licensing regime to foreign social media and internet messaging companies will be required. Social media and internet messaging service providers should be prepared for a more regulated regime with additional compliance obligations going forward.

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