Meta says Malaysia's social media licensing plan lacks clarity, threatens innovation

Malaysia said in July it will require social media platforms and messaging services with more than eight million users to obtain a licence, as part of efforts to curb financial scams, cyberbullying and sexual crimes online.

The companies could face legal action if they failed to do so by Jan. 1, 2025.

The plan has faced a backlash, with an Asian industry group that includes Meta urging the government in August to pause the move. Malaysia however has said it will not delay the proposed regulations, with Communications Minister Fahmi Fadzil saying tech companies must comply with local laws to continue operating the country.

Meta's director of public policy for Southeast Asia Rafael Frankel said the firm has not yet decided if it plans to apply for the license ahead of the January deadline, due to a lack of clarity over the new regulations.

The timeline to apply for a license was "exceptionally accelerated" and the obligations for social media firms under the plan remained unclear, Frankel said in an interview with Reuters.

"These regulations tend to take a couple years to go through multiple iterations... to properly structure them and to balance the need for safety and ensure that you don't inadvertently cap innovation and digital economic growth," he said.

Malaysia's communications ministry did not immediately respond to a request for comment on the interview.

In a Facebook post on Wednesday following a meeting with Meta representatives a day earlier, communications minister Fahmi thanked the company for its willingness to cooperate with the government but urged it to take more proactive measures against sexual content involving minors on its platforms.

Frankel said Meta shared the Malaysian government's goal for a safe online environment and was working closely with the communications regulator to remove or restrict harmful content from its platforms.

"We don't need a licensing regime in order to take online safety seriously. We already take it seriously," he said.

Meta has shared its concerns with the government and hopes to "bridge the differences" over the proposed regulations before they are implemented, Frankel added, without providing details.

Malaysian authorities deem online gambling, scams, child pornography and grooming, cyberbullying and content related to race, religion and royalty as harmful.

Malaysia reported a sharp increase in harmful social media content earlier this year and urged social media firms, including Facebook parent Meta and short video platform TikTok, to step up monitoring on their platforms.