The Malaysian government has defended its forthcoming implementation of a licensing regime for tech companies after a leading industry group called on it to put a pause on the measure.
Fahmi Fadzil, Malaysia’s minister for communications, warned Big Tech firms on Tuesday that they would have to abide by the local rules in order to continue operating in the country.
The statement comes after the Asia Internet Coalition (AIC), whose members include Google, Meta, and X (formerly Twitter), issued an open letter to Malaysian Prime Minister Anwar Ibrahim this week, urging the government to reverse its licensing plan.
The letter, which was published on AIC’s website on Monday, was removed shortly after and the group did not comment on its deletion. It was later posted again with several changes, however. The sentence reading that the government’s licensing plan was “unworkable” for the industry and the list of AIC members were removed in the updated version. The letter communicates concerns that the new rules could harm the country’s digital economy.
“The proposed regime also represents a significant shift in Malaysia’s regulatory landscape, and introducing such a change without a clear roadmap or sufficient industry engagement risks destabilizing an ecosystem that relies on innovation, flexibility, and openness,” the letter reads. “This will have profound effects on established players, emerging startups, small businesses, and the broader digital economy.”
The communications minister has, on the other hand, made it clear that there would be no reversal to the proposed licensing regime and tech companies would have to follow the local laws.
“They are Big Tech, but our laws are bigger,” Fahmi said in a media talk on Tuesday. “So if they want to operate in Malaysia, they must respect and comply with our laws.” The minister added the government is ready to discuss the rules with the AIC, but their implementation will not be delayed.
The proposed rules, titled “Regulatory Framework for Internet Messaging Service and Social Media Service Providers”, will come into effect from January 25, 2026.
The regulatory licensing for Big Tech companies was announced towards the end of July. Under the new rules, obtaining an “Applications Service Provider Class Licence” from the government would be mandatory for social media platforms with more than eight million users in the country.
The new law would help combat online scams and fraud, cyberbullying, and sexual crimes against children, according to the government. The licensing proposal was released on August 1, 2024. Violations under the regulations could lead to fines worth up to $70,000, five years in jail, or both. It could also result in an additional daily fine in case of continued violations after flagging.
