The decision to grant Tencent’s WeChat and ByteDance’s TikTok licenses to operate in Malaysia exemplifies the global movement towards stricter platform accountability. These licensing requirements are key to fostering a safer online environment, including for vulnerable demographics like children.
Malaysia’s communications regulator has granted Applications Service Provider Class licenses to Chinese tech giants Tencent, which runs WeChat, and ByteDance, the operator of TikTok, under a new social media law. In a press release dated January 1, the Malaysian Communications and Multimedia Commission (MCMC) stated that Meta, the parent company of Facebook, Instagram, and WhatsApp, as well as Telegram, have begun the licensing process to operate in the country. Meanwhile, Elon Musk’s X (formerly Twitter) and Google, which owns YouTube, are exempt from this requirement as they have fewer than 8 million users in Malaysia.
This licensing requirement, aimed at tackling rising cybercrime in the country, requires all social media platforms and messaging services with more than 8 million users in Malaysia to apply for a license or face legal action. According to MCMC, the platforms must have a dedicated team for responding to complaints and investigations, ensure they are not used as mediums for fraud, hate speech, or pornography, and address issues such as sexual crimes against children and financial scams.
Critics have raised concerns that this licensing requirement could lead to overregulation and stifle freedom of speech. But experts say it’s essential to balance the needs of different stakeholders in the digital ecosystem.
While the move will likely impact the companies’ operations immediately, it will also reshape the online landscape in Malaysia. It’s worth noting that these companies will have to comply with the regulations for at least 10 years. In addition, they’ll have to contribute 6 percent of their local revenue to a universal service fund to narrow the country’s digital divide.
As these companies lay the groundwork for compliance, they’ll need to communicate clearly with their users about what to expect. This will help avoid confusion and backlash during the transition period.
It’s also crucial that governments prioritize open communication with technology companies and other stakeholders, ensuring the rules are realistic, fair, and practical. This will reduce the likelihood of a backlash during the implementation phase and help mitigate the risk of overregulation, stifling free speech, or inhibiting technological innovation.
In the long run, this will create a more secure and empowering digital landscape for all Malaysians, including children and vulnerable groups. In this way, countries like Malaysia must chart a balanced path in digital governance. These early lessons from Asia will inform global efforts to boost user protection and enhance regulatory oversight for all digital spaces. Ultimately, this is the best way to create a more safe and thriving Internet for all.