Universiti Sains Malaysia’s Selvakumar Manickam said such actions were warranted if platforms were found to be insincere in complying with advertising regulations and deliberately neglect user safety.
“Investment scams remain rampant, possibly due to weak enforcement, regulatory loopholes, or the rapid adaptation of fraud syndicates,” he told FMT.
“In extreme cases, a full suspension of social media platforms may be necessary if they continuously fail to fulfil their responsibility to enhance online security and protect the public.”
On July 27, the Malaysian Communications and Multimedia Commission (MCMC) announced that all social media and internet messaging platforms with at least eight million registered users in Malaysia must obtain a licence.
Under the Communications and Multimedia Act 1998 (Act 588), the licensing requirement aims to strengthen online security, protect users, and enhance oversight of internet messaging and social media service providers.
Selvakumar said suspending social media platforms was not an unprecedented move, citing a recent case in Brazil where authorities blocked access to a platform due to the widespread dissemination of fake news.
“In fact, a RM3.8 million fine was imposed on a company owned by tech billionaire Elon Musk after users in the country continued accessing the social media platform X despite its suspension,” he said.
He stressed that decisive action was crucial to protect the public from financial losses and emotional distress caused by fraud.
Meanwhile, Universiti Teknologi Mara (UiTM) media and information warfare studies, centre security and political analyst Noor Nirwandy Mat Noordin said social platform licensing should be complemented with regular performance audits to ensure continuous improvements.
He proposed forming a high-level committee comprising academics, psychological warfare experts and legal practitioners to oversee compliance.
“Intervention is necessary to ensure compliance. This will help reassure the public that licensing and enforcement efforts are carried out properly and effectively,” he said.
Noor Nirwandy also urged social media providers to work closely with authorities and relevant experts to refine countermeasures against scammers’ evolving tactics, ultimately finding the best solutions to combat online fraud.