SINGAPORE (July 31): Communications Minister Fahmi Fadzil expressed confidence that the new regulatory framework for a safe internet will not discourage investments in the country.

He said that, on the contrary, investors will be more encouraged by the new regulations, which are set to be implemented next year, as it provides a much clearer regulatory framework.

“We believe that if anything, this might spur further investment, because the regulatory landscape becomes much clearer when these boundaries are there.

“I believe that if we are able to do this, perhaps this is something that can be studied by other countries, other jurisdictions,” he told Bernama and Nikkei Asia in an interview at the end of his three-day working visit here on Tuesday.

The minister said that despite demand from segments of the public to suspend certain social media platforms, especially due to cases of cyberbullying, the government has decided to take the “middle path” by engaging with the platforms, and working together with them to implement the framework.

Explaining the government’s decision to introduce licensing, Fahmi said it stems from the need to curb scams, child sexual abuse material, and cyberbullying on these platforms, especially after the suicide of social media influencer A Rajeswary, also known as Esha, which sparked public outcry.

He stated the decision was not made overnight, as engagements with the platforms began in February.

The platforms are also given a five-month grace period between the introduction of the framework on Aug 1 and its implementation on Jan 1, 2025, in order to get licensed.

Meanwhile, Fahmi, who is also a spokesperson for the unity government, said the government had no plans as of now to extend the new regulatory framework to e-commerce platforms or marketplaces.

However, Fahmi noted that the Malaysian Communications and Multimedia Commission (MCMC) is prepared to work with the Ministry of Domestic Trade and Consumer Affairs, which oversees e-commerce platforms in the country, to address issues such as scams on the platforms.

“We want these online marketplaces, social media platforms, and online messaging services to take a more proactive approach to address these concerns if they detect any criminal activity.

“Online scams are a serious issue. But I don’t think now is the time [to extend the regulatory framework to e-commerce platforms],” he said.

Fahmi said the estimated loss from scams, particularly on social media, amounted to about RM500 million on one platform alone, in the first half of this year.

On Saturday, the MCMC said it will introduce a new regulatory framework for safe internet use by children and families on Aug 1, with implementation set for Jan 1, 2025.

Under the new framework, social media and internet messaging services with at least eight million registered users in Malaysia must apply for an Application Service Provider Class Licence under the Communications and Multimedia Act 1998 (Act 588).

According to Fahmi, the eight million users threshold was decided based on surveys conducted by the ministry and other organisations regarding the size and user base of the social media platforms.

“Generally, based on the rule of thumb, we estimated it to be about 25% of Malaysia’s population,” he said.

During his working visit to Singapore, Fahmi met with officials from various social media platforms such as Meta, Google, TikTok, and Tencent to update them on the new regulatory framework, and discuss online security, as well as potential collaborations to combat illegal activities on these platforms.

He also held bilateral talks with Singapore’s Digital Development and Information Minister Josephine Teo.

Uploaded by Tham Yek Lee