Malaysia has recently introduced a new regulation requiring all social media platforms and messaging services to obtain an Application Service Provider Class (ASP(C)) license. This rule officially takes effect on January 1, 2025, to create a safer and more regulated digital environment.
What is an ASP(C) License?
The ASP(C) license is an official permit issued by the Malaysian Communications and Multimedia Commission (MCMC) for social media platforms and messaging services with active users in the country.
The license ensures that all platforms operating in Malaysia comply with local regulations, particularly in addressing harmful content and combating cybercrime.
Which Platforms Are Required to Register for the License?
The regulation applies to all social media platforms and instant messaging services with more than 8 million active users in Malaysia. Several major platforms, such as WeChat, have confirmed compliance with this rule. The Tencent-owned app has applied for and received its license to operate in Malaysia. Similarly, TikTok has also obtained approval from the government.
On the other hand, some platforms are still obtaining their licenses. Telegram, for instance, is in the final stages of its application, while companies like Meta, which manages Facebook, Instagram, and WhatsApp, are just starting the process.
According to CNBC Indonesia, some platforms have opted not to apply for a license. X (formerly Twitter), owned by Elon Musk, claims fewer than 8 million active users in Malaysia and therefore does not meet the criteria.
Regulators are currently reviewing this claim. Additionally, Google, which owns YouTube, has not applied for the license due to concerns over the classification of video features under the existing regulations.
What Happens If a Platform Fails to Register for the License?
Platforms that fail to obtain the license will face legal consequences. The Malaysian government has imposed penalties of up to RM500,000 and/or a maximum prison sentence of 5 years for companies that do not comply with the rules.
In addition, a daily fine of RM1,000 will be imposed for each day the violation continues after a guilty verdict is issued. Furthermore, directors, officers, or managers of companies failing to comply with the licensing requirements may also be held personally liable.
Why is This Regulation Important?
This regulation was introduced to address the sharp rise in cybercrime and the spread of harmful content on social media. Earlier this year, Malaysia reported a significant increase in cases of harmful content, including hoaxes and hate speech, which are considered threats to public security.
The Madani Government, through MCMC, aims to ensure that online platforms operating in the country take responsibility for creating a safer digital environment for their users.
Response and Expectations
This new licensing regime significantly shifts Malaysia's digital regulatory landscape. Online service providers wishing to continue operating in the country must understand the new licensing requirements and application procedures.
They are also encouraged to actively engage in dialogue with MCMC to provide feedback and help shape better guidelines in the future.
As technology and the digital landscape continue to evolve, online service providers are expected to strategically navigate these changes to ensure compliance and sustained success in the Malaysian market.
Sources:
- Novina Putri Bestari, China Menyerah, Tunduk Ikut Aturan Baru Malaysia, CNBC Indonesia, 4 January 2025, https://www.cnbcindonesia.com/tech/20250103065718-37-600404/china-menyerah-tunduk-ikut-aturan-baru-malaysia
- Baker McKenzie, Malaysia: Perizinan Penyedia Layanan Media Sosial dan Pesan Internet - Mulai 1 Januari 2025, Baker McKenzie, 4 January 2025, https://insightplus.bakermckenzie.com/bm/technology-media-telecommunications_1/malaysia-licensing-of-social-media-and-internet-messaging-service-providers-from-1-january-2025-onwards
