KUALA LUMPUR, Jan 7 — Social media companies now have to play by the rules of a new law in Malaysia, but they may find it actually benefits them.
On January 1, these two key events affecting these companies happened in Malaysia:
1. Automatic registration as licensees
For social media and internet messaging companies with at least eight million users in Malaysia (think: WhatsApp, Instagram, Facebook, Telegram, WeChat, TikTok, Youtube), they are considered automatically registered as licensees under the Communications and Multimedia Act (CMA) 1998.
This means they are now regulated by the Malaysian Communications and Multimedia Commission (MCMC), and have to follow Malaysia’s laws including the CMA and ONSA.
2. Online Safety Act 2025 (ONSA) applies to these social media, internet messaging platforms now
ONSA does not license any companies, but its regulations apply to licensees under CMA.
ONSA clearly states the eight mandatory duties for platforms to ensure Malaysians’ online safety, including removing harmful content.
This is what social media companies actually want: Written rules and transparent processes
MCMC deputy managing director (development) Eneng Faridah Iskandar said both CMA and ONSA will provide “regulatory certainty” — which is desired by international companies such as platforms when making investment decisions.
“When they want to invest in countries, companies will do a due diligence, and part of the due diligence requirements is that the rules must be written,” she told Malay Mail in a recent interview.
Eneng Faridah said companies would also want transparency, such as clear procedures on enforcement against non-compliance.
“Because as businesses, what you need is regulatory certainty. You want to have the opportunity to submit, you want to have the opportunity to make representations about whether you should take action against me or not.
“So those are two key components. Both CMA and ONSA have that,” she said.
She said these two laws assure tech giants that MCMC is a credible regulator, stressing that the aim is to get these companies to work together to fight online harms.
“And our intent for regulation is for public good, it’s not about anything else other than that. Because we want to together with you fight the common enemy, because we want to create a safer online environment,” she said.
Flipping the switch to ‘proactive’ mode: Remove harmful content without being told to do so
With ONSA stating platforms’ duties and obligations, Eneng Faridah said the responsibility for users’ safety now shifts to the platforms.
Instead of platforms “being told what to do” by MCMC as the regulator, ONSA flips it around to a new approach of having these platforms “self-regulate”, she said.
“So they will proactively remove harmful content — the law is very clear — without having to wait for an instruction,” she said.
ONSA’s Section 26 empowers platforms to remove priority harmful content (scams and child sexual abuse material) on their own, even without any user reporting such content to them.
What will social media and internet messaging firms face if they fail to comply? (Hint: Procedures transparently written down in ONSA and CMA)
ONSA features the Online Safety Committee which gives advice and recommendations to MCMC on online safety measures, such as measures to reduce users’ risk of exposure to harmful content.
Eneng Faridah said this Online Safety Committee serves as a “check and balance”, since it is not under MCMC or the Communications Ministry, but under the Minister in the Prime Minister’s Department (Law and Institutional Reform).
This committee includes representatives from five ministries, the Chief Children Commissioner or a representative, the police, and also one person representing all the social media and internet messaging firms.
ONSA states the procedures for multiple scenarios, including what platforms should do when users report harmful content to them; and what happens if users make such reports to MCMC.
ONSA:
- Section 23 and Section 25: MCMC can issue written “instructions” to platforms to remove harmful content.
- Section 30: Before MCMC can issue written “direction” for platforms to comply with ONSA: Give platforms a written notice and time to make submissions; MCMC to consider submission before issuing direction; and direction has to be recorded in a register.
Failure to comply with MCMC’s “instructions” or “directions” is an offence punishable upon conviction with a maximum RM1 million fine, and a maximum RM100,000 daily fine for every day the offence continues.
- Section 37, Section 39: MCMC can issue “notice of non-compliance” (with a maximum RM10 million financial penalty) to platforms for not complying with ONSA duties.
- Section 38: If a platform applies for review of non-compliance notice, MCMC’s possible decisions include: dismissing review, withdrawing notice, changing the financial penalty sum.
MCMC told Malay Mail that the financial penalty can be imposed “without prejudice to any regulatory or legal action that may be taken under the CMA 1998”, which means other action can also be taken under CMA.
CMA:
Under CMA, social media and internet messaging firms — just like all other CMA licensees (such as telcos) — will face the same procedure for non-compliance.
For example, Eneng Faridah said there is an opportunity to be heard before MCMC issues directions under the CMA’s Section 51: “When we want to issue you a direction, we have to give you a written notice, then you have time to submit to us why you cannot be issued a direction. Of course we will evaluate, then we will make a decision whether to proceed with the action or not.”
MCMC’s directions to licensees under CMA also have to be registered, and can be found on its website.
Under CMA’s Section 53, failure to comply with MCMC’s direction can result in a maximum RM1 million fine or maximum 10 years’ jail or both, and a further RM100,000 daily fine if the offence continues after conviction.
Social media firms can appeal MCMC’s decisions or actions
Eneng Faridah said platforms can go to the Online Safety Appeal Tribunal under ONSA, such as when they disagree that a content is harmful and needs to be removed.
Similarly, any licensee under CMA can challenge MCMC’s decision at an Appeal Tribunal set up under CMA and chaired by a High Court judge, she said.
She said platforms can also go to court for judicial review to challenge any decision by MCMC or the Communications Minister.
Can MCMC ban or block social media or internet messaging platforms for non-compliance?
Eneng Faridah clarified both CMA and ONSA do not state specific powers for MCMC to restrict access or block access to these platforms.
While it is still legally possible to restrict access to platforms that breach laws or licence conditions, she said MCMC’s focus is on working together with the platforms to reduce Malaysians’ exposure to harmful content.
“What we are really interested in is making sure they comply with ONSA and that they recognise the duties and obligations that they have under ONSA and they take proactive steps.
“Because that’s really the key. So it’s not for the purpose of penalising, it’s not for the purpose of banning, because at the end of the day, if you look at the overall intention of ONSA, it’s not to go after them, it’s actually to go after the common enemy, paedophiles and scammers. That’s our real target, and we need their assistance to mitigate those incidents,” she said.
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