KUALA LUMPUR: Malaysia’s Communications Minister Fahmi Fadzil on Tuesday ( Aug 27 ) warned tech firms to comply with the government’s licensing regime if they wanted to continue operating in the country.
A partnership of tech companies sent its most recent available letter to Malaysian Prime Minister Anwar Ibrahim, in which he urges the government to reconsider its controversial registration program, a day later.  ,
Social media and messaging platforms with over 8 million users will need to obtain an annual operating license in accordance with the new framework, which could lead to fines of up to RM500, 000 ( US$ 15, 000 )
The Asia Internet Coalition ( AIC ), a trade organization established to address public policy issues and promote the growth of the internet economy in the Asia Pacific region, claimed the regime would “unfavor innovation” and “impose undue burdens on businesses”.
” It will prevent continuous purchases and deter future people due to the complexity and expense of compliance”, said AIC, whose members include Meta, Google, Amazon and Apple.  ,
The proposed program, according to civil society organizations like Malaysia’s Centre for Independent Journalism, was stifle free speech and criticism from the state.
On Tuesday, Mr. Fahmi addressed these remarks on the outside of an Orang Asli growth function in Sepang, stressing that the regime’s implementation is scheduled to begin on January 1st, 2025, will not be postponed.
” They are Big Tech, but our laws are bigger. But if they want to work in Malaysia, they must regard and cooperate with our regulations”, he said.
The secretary cited recent examples from the UK and France as proof that the Indonesian government’s decision to enact more stringent regulation of tech companies.
In the UK, widespread turmoil and protests broke out in the summer and August, while Telegram leader Pavel Durov was detained in France on Saturday as part of a spacecraft into child porn and drug trafficking on the well-known encrypted communications app.
According to Mr. Fahmi, the accusations against Durov involved “many stuff that we are concerned about- that is, crimes that have migrated to cultural media.”
” POSITIVE” Debate WITH BIG TECH
When CNA questioned whether the government had considered a situation wherein tech firms would refuse to comply and step out of Malaysia, Mr. Fahmi claimed that his government had “examined all elements”.
He added that his conference with technology companies in Singapore in soon July on the licensing program was “positive,” in that they were prepared to talk about the subject.
” We will continue discussions … The government of Malaysia is very receptive to holding conversations, taking into consideration their opinions”, he said.
The AIC claimed in the most recent version of its notice that an ecosystem that depends on creativity, flexibility, and openness could be destabilized by the introduction of the licensing program “without a clear roadmap or enough industry engagement.”
The industry is divided on the range of the obligations and what precisely these platforms would be signing up for, it said.” The absence of these important discussions has created a great deal of doubt in the industry.”
The AIC raised concerns about the regime’s legal responsibility for members of licensed service providers and the “insufficient” five-month grace time for compliance before the plan begins.
Additionally, it raised questions about demanding content moderation requirements, such as the condition that spiritual content been approved by the Department of Islamic Development Malaysia.
Issues OVER AIC LETTER
Mr. Fahmi pointed out that the AIC had published three versions of its notice, all of which had been subject to CNA’s review.
The second type, dated Friday, contained the symbols of all its 17 members and said the licensing program would be “unworkable” for the business.
Regional super-app Grab, one of its people, immediately issued a declaration distancing itself from the email, saying that the proposed legislation would not affect its procedures.
Because Grab is focused on ride-hailing and food delivery, it would not fall under the definition of a platform that requires a license.
The AIC then released the second version of its letter from Monday, which included the logos of only six businesses as “applicable representation.” The third version, also dated Monday, did not contain any company logos.
The section that said the licensing regime would be “unworkable” was also omitted from the second and third versions.
In a statement released on Tuesday, the Malaysian Communications and Multimedia Commission (MCMC) said that it had” consistently engaged with a broad spectrum of stakeholders, including service providers, civil society organisations, non-governmental organisations, ( and ) law enforcement agencies”.
The final framework must be fair, effective, and in line with the needs of both the industry and the general, according to the statement.
Mr. Fahmi claimed that MCMC had met with AIC representatives in May to talk about the regime and that AIC had repeatedly requested more time to respond up until the open letter was made public on Friday.
He continued, adding that he continues to believe that tech companies had responded positively to discussions on the regime.” What is clear is that AIC does not represent all the platforms, but only some of them,” he said.
Mr. Fahmi acknowledged it was” strange” that AIC had distributed multiple versions of its open letter, and that Grab’s claim that it was not consulted on the letter made things “awkward.”
However, Mr. Fahmi stated that he continues to take an “open” attitude by giving AIC and any other company the opportunity to meet and express their opinions on the licensing regime.
” There is still room for discussion”, he said.
The Malaysian government continues to insist that social media platforms and messaging apps must be imposed with a regulatory framework to ensure a safer internet for Malaysian citizens, especially for children and families.