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.

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.

Subsequent to our client alert issued in November 2021 in relation to cloud service regulation in Malaysia, the Malaysian Communications and Multimedia Commission has since shed light on the scope of the licensing regime and the availability of a grace period until 31 March 2022 to those affected to fully comply with the new licensing requirement.

Effective 1 January 2022, cloud service providers in Malaysia will be subjected to licensing requirements under the Malaysian Communications and Multimedia Act 1998. Technical standards are also expected to be implemented in due course to ensure that licensed cloud service providers comply with prescribed requirements as to data security and data protection. Cloud service providers are advised to carefully consider whether the new licensing regime applies to their solutions, and to ensure they are duly licensed when the requirements come into force in the new year.

The Malaysian Anti-Corruption Commission (MACC) has charged a company and its director under the new corporate liability offence in connection with a count of bribery worth RM 321,350 paid to secure a subcontract.

This marks the first case under the new corporate liability regime and clearly demonstrates the MACC’s commitment in enforcing the corporate liability offence under Section 17A of the Malaysian Anti-Corruption Commission Act 2009 (“Section 17A”), which recently came into force on 1 June 2020. 

In light of this, commercial organisations are urged to take immediate steps to ensure that they have in place “Adequate Procedures” as a statutory defence against an offence under Section 17A.