According to the Malaysian Communications and Multimedia Commission (MCMC), one of the requirements for an Applications Service Provider Class or ASP (C) licence must be by a “locally incorporated company”.
The country’s internet regulator said the establishment of a locally incorporated entity is a “prequalifying criterion for licensing”, although the communications minister has the discretion to allow a foreign company to be registered as a class licensee on a case-by-case basis.
Another requirement is for these social media companies to pay a registration fee of RM2,500.
These requirements were spelt out in MCMC’s “Frequently Asked Questions” on the regulatory framework for internet messaging service and social media service providers.
MCMC went on to say that the relevant service providers would have a grace period of five months from Aug 1 to apply for the ASP (C) – which would be valid for a year – and comply with the licensing requirements.
The effective date of the licensing requirement is Jan 1, 2025.
“However, during this grace period, the service providers are required to use their best efforts to combat online harm on their platforms such as cyberbullying, online scams and gambling and child sexual abuse material.”
MCMC also said that service providers must comply with the Communications and Multimedia Act 1998, the Personal Data Protection Act and consumer codes.
“The licensee shall indemnify the minister and MCMC against any claims or proceedings arising from any breaches or failings on the part of the licensee.”
On Monday, Prime Minister Anwar Ibrahim said the government is introducing regulations on social media and internet messaging services to counter the spread of harmful information.
Anwar implied that the regulations were in response to the cyberbullying of TikTok influencer A Rajeswary, who reportedly took her own life.
Last Saturday, MCMC announced that all social media and internet messaging services with at least eight million registered users in Malaysia must apply for a licence.
MCMC said the new regulations will apply to social media platforms, and not users, and are likely to affect platforms such as WhatsApp, YouTube, Facebook, Instagram, TikTok, Telegram, WeChat, Snapchat and Line.
Failure to obtain a licence after the effective date would be an offence, which can be punishable under the Communications and Multimedia Act 1998 (Act 588).