Technology Giant Desak Malaysia Postpones Social Media Platform License Plan

JAKARTA - An Asian industry group that includes Google, Meta, and X urged Malaysia in an open letter to delay plans that would require social media services to apply for a license, citing a lack of clarity regarding the proposed regulations.

However, the letter from the Asia Internet Coalition (AIC) was removed from their website on Monday night, August 26 and the group did not immediately respond to requests for explanation from the media.

Grab, a member of the coalition, said in a separate statement that they were not informed or consulted regarding the letter, adding that the government's plans had no impact on their operations.

In July, Malaysian communications regulators stated that social media platforms with more than eight million users in the country would be required to apply for a license starting this month as part of an attempt to combat cybercrime. Legal action can be taken against platforms that do not comply with these rules until January 1, 2025.

In a letter dated Friday August 13 and addressed to Malaysian Prime Minister Anwar Ibrahim, AIC - who is also a member including Apple Inc and Amazon - said the proposed licensing regime was "inapplicable" to the industry and could hinder innovation by imposing inappropriate burdens on business.

The group said that there was no formal public consultation regarding the plan, thus creating uncertainty among industry regarding the scope of obligations to be imposed on social media platforms.

"Tidak satu platform yang dapat diharapkan untuk mendaftar di bawah kondisi seperti ini," tulis Managing Director AIC, Jeff Paine dalam surat yang diposted di situs web kelompok tersebut.

Malaysia's Ministry of Communications declined to comment on the letter. The prime minister's office also did not respond to a request for comment.

AIC also expressed concern that proposed regulations could hamper Malaysia's growing digital economy, which has attracted significant investments this year. The group said it shared the government's commitment to dealing with online issues, but the proposed timeline implementation left the industry without clarity and sufficient time to assess its impact.

The Malaysian government reported a sharp increase in malicious social media content earlier this year and urged social media companies, including Meta and short video platform TikTok, to increase monitoring on their platforms.