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Social media giants push back against Malaysia's upcoming licensing rules

KUALA LUMPUR: Social media operators have expressed resistance to the impending implementation of the social media operators licence, set to take effect on Jan 1.

Communications Minister Fahmi Fadzil said platforms like Facebook generated approximately RM2.5 billion in advertising revenue from Malaysia last year, including advertisements promoting scams and online gambling, which are illegal in the country.

"Naturally, there is pushback as they perceive this licence will have an impact on their revenue," Fahmi said during the Edisi Khas Buletin TV3 podcast broadcast on Facebook and YouTube today.

Fahmi, who is Madani government spokesman, said the ministry had met with social media operators over 20 times to urge them to block illegal advertisements that could lead to cybercrimes.

"We've repeatedly emphasised 'no, stop, block'. But they refused, allowing victims to continue falling prey to scam ads," he said.

As a response, Fahmi said amendments to the Communications and Multimedia Act 1998, along with the introduction of the licence would help address these issues.

Fahmi highlighted the severity of online scams, noting that Malaysians suffered losses amounting to RM432 million in 2023 alone due to various forms of cyber fraud.

"This is a massive figure. Many victims are retirees or those who have just received their Employees Provident Fund (EPF) withdrawals," Fahmi said.

He said these scams often exploit platforms like Facebook and others to deceive users, particularly targeting vulnerable groups such as retirees.

"Beyond scams, other cybercrimes, including online gambling, cyberbullying, and sexual crimes against children, are also on the rise, further underscoring the urgency of stricter regulations.

"This is not limited to Facebook but spans across multiple platforms," he said, pointing out the pervasive threats in the digital sphere.

The Edisi Khas Buletin TV3 podcast, hosted by Halim Mohamed and Mas Zharif Zhafri Aziz Desa aimed to raise awareness of the growing threats posed by online scams and cybercrimes.

"The Communications Ministry reiterated its commitment to safeguarding Malaysians from digital threats, emphasising that the upcoming Social Media Operators License will serve as a critical measure in reducing cybercrime and ensuring safer online interactions for all," Fahmi said.

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