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 licensing 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$ 115, 000 ) for non-compliance.
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 “unnecessarily burden businesses” and cause “undue burdens” for innovation.
” 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 government has also been criticized by civil society organizations, including Malaysia’s Centre for Independent Journalism, as one that might stifle free speech and criticism of the government.
On the day of an Orang Asli creation event in Sepang on Tuesday, Mr. Fahmi addressed these remarks, stating that the implementation of the program, which 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. Fami, there are “many stuff that we are concerned on,” particularly crimes that have migrated to social media.
” POSITIVE” Conversations 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 sights”, 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 lack of these important discussions has caused the economy to be very uncertain about the range of the responsibilities and what exactly these platforms would be signing up for, it said.
The AIC raised concerns about the regime’s legal responsibility for employees of licensed service providers and the “insufficient” five-month grace time for compliance before the plan begins.
Additionally, it raised questions about strict guidelines for content restraint, such as the condition that spiritual content been approved by the Department of Islamic Development Malaysia.
Inquiries OVER AIC LETTER
Mr. Fahmi pointed out that CNA had reviewed the AIC’s three versions of its notice, which were all released after the AIC had reviewed them.
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 functions.
Because Grab focuses on ride-hailing and food supply, it would not fall under the definition of a system that requires a license.
The AIC finally released the next version of its letter from Monday, which included the logos of only six businesses as “applicable picture.” The second type, even dated Monday, did not contain any organization logos.
The section that said the registration system may be “unworkable” was also omitted from the second and third types.
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 last framework must be good, effective, and in line with the needs of both the business and the general, according to the statement.
Mr. Fahmi claimed that MCMC and AIC had discussed the government in May and that AIC had repeatedly requested more time to respond up until Friday’s opened email was made public.
He continued, adding that he continues to believe that software companies had responded favorably to discussions on the program.” What is apparent is that AIC does not reflect all the platforms, but only some of them,” he said.
Mr. Fahmi acknowledged that 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” stand by inviting AIC and any other business to join and express their opinions on the registration system.
” There is still room for discussion”, he said.
The Indonesian government continues to insist that social media platforms and messaging apps may be regulated in order to make the internet safer for Malay citizens, especially children and families.