Global tech firms, social media giants reject Putrajaya's licensing plan

Leading global internet companies have criticised the government's plan to license and regulate social media platforms. 

They say the move not only lacks a clear roadmap but also is a burden on businesses.

"We believe this licensing framework is unworkable for the industry and will adversely impact innovation by placing undue burdens on businesses. It will hinder ongoing investments and deter future ones due to the complexity and cost of compliance," said the Asia Internet Coalition (AIC), which represents leading internet and technology companies operating in the Asia-Pacific region.

In an open letter to Prime Minister Anwar Ibrahim, AIC which represents tech giants such as Google, Amazon, Apple, Grab and booking.com, as well as social media platforms Meta, X and LinkedIn, criticised the lack of consultation on the plan.

"The absence of these critical discussions has created a great deal of uncertainty among the industry regarding the scope of the obligations and what exactly these platforms would be signing up for.

"No platform can be expected to register under these conditions," reads the letter, which was also sent to Communications Minister Fahmi Fadzil and Malaysian Communications and Multimedia Commission chairman Mohamad Salim Fateh.

It reminded Putrajaya that the digital economy accounts for 23.2% of Malaysia’s GDP and provides about 500,000 jobs.

"The proposed regulations could unfortunately disrupt this momentum by creating uncertainty and undermining investor confidence."

In announcing the controversial plan, the government claimed it was to address online harms such as cyberbullying, fraud and hate speech.

But AIC said the proposed licensing lacked clarity, adding that affected industries would not have enough time to fully grasp the implications.

"We therefore urge the government to pause and carefully consider how this licensing regime aligns with its broader economic goals before proceeding further, and we strongly encourage meaningful collaboration with the industry to address the wide range of concerns raised, particularly given the far-reaching scope of the proposed regulations."

Rights activists have already condemned the plan to license and regulate social media platforms, which is widely seen as part of the Anwar government's crackdown on political dissent.

In June, vocal rights group Lawyers for Liberty (LFL) said the move was a continuation of the current trend of suppressing public discourse and was no different from the "time-honoured manner of authoritarian regimes".

As part of the plan, the government is reportedly proposing a kill switch that would allow content to be deleted immediately, as well as the introduction of a content code for platforms that also regulates political content.

This comes as the government continues to block news websites and blogs, and requests major social media platforms such as YouTube, TikTok, X and Facebook to delete comments critical of it.

Earlier this year, Putrajaya admitted to making requests through the Malaysian Communications and Multimedia Commission (MCMC) for platform providers like TikTok to delete videos critical of the government.

Shortly after coming to power in November 2022, the government threatened TikTok as it was unhappy over its wide use by opposition supporters.

Other platforms such as X, YouTube and Facebook have repeatedly refused the government's request to delete content, in line with their policy on free speech.

Since his appointment as minister in charge of media affairs, Fahmi Fadzil has come under criticism over action taken against media outlets.

In June last year, MalaysiaNow was blocked for 48 hours without any notice.

 TV Pertiwi and Utusan TV had their websites blocked as well, in addition to a blog run by former MP Wee Choo Keong.

The series of measures against the press has resulted in Malaysia slipping 34 places in the annual World Press Freedom Index, from 73rd place last year to 107th.

 AIC meanwhile warned that any attempt to licence internet-based messaging platforms would send the wrong signal to investors and drive away new entrants "at a time where Malaysia has recorded encouraging digital investments".