KUALA LUMPUR: Half of Malaysia's annual advertising expenditure is being funnelled directly to social media platforms, says Communications Minister Fahmi Fadzil.
"Most media organisations that I have met said that when they pull their data together, their assessment is about RM2.5 billion from that RM4.5 billion has gone to social media directly and no longer goes through media organisations.
"This shift has impacted many media organisations, leading to workforce attrition," he said at a press conference during the Asia News Network (ANN) Summit 2024 here today.
Also present were ANN advisor Datuk Seri Wong Chun Wai, ANN director and board member Datin Esther Ng, and ANN board chairman and director Mahfuz Anam.
Fahmi expressed concern over the situation, noting that many long-serving journalists have been laid off due to these financial changes. However, he said that the government currently has no plans for direct intervention.
Instead, Fahmi said media organisations have been encouraged to engage in discussions with social media platforms to find a way forward.
"At this point, we do not feel it is necessary to follow the lead of some other countries pursuing this course. We believe it is important to chart our own path and perhaps find a balance, a meeting point between business interests of media organisations and social media platforms. We will allow this engagement process to unfold," he said.
Meanwhile, when asked if Malaysia, as the Asean chair next year, would bring together media agencies from Asean for collaboration, Fahmi said Radio Televisyen Malaysia (RTM) is planning to establish a new channel focusing on Asean.
However, he left it to RTM to lead and manage this initiative.
"I think creating a more comprehensive network among media organisations in the Southeast Asian region will bring Asean countries closer together. I believe this effort has already started and needs to be intensified," he said.
Fahmi expressed hope that Malaysia will play a key role in hosting and facilitating closer collaboration among media organisations in the Southeast Asian region.