MY govt to verify X's claims following social media license snub

It's been a week since Malaysia's new social media license came into effect, but it seems that some players have yet to apply - one of which is Elon Musk's X.

In a statement to the Malaysian communications and multimedia commission, X said that it has not reached the required threshold of eight million users, therefore not requiring a license. In response, communications minister Fahmi Fadzil said that the MCMC will require additional time to verify the claim, according to media reports. 

X is not the only social media player who have missed the deadline. Google's YouTube has also not applied for a license. The platform is reportedly still in discussions with MCMC. Fahmi explained that YouTube was categorised as a social media application due to the presence of YouTube Shorts, which shares similarities with ByteDance's TikTok. YouTube also features sharing and commenting features on its content. 

Don't miss: Social media providers may be ok with the new social media regulations, but what about agencies? 

The minister added that he has requested MCMC to give YouTube some time to come back with how many users are utilising Shorts and whether it plans to spin off Shorts into a separate platform in the near future. 

In addition, Malaysia is weighing on whether LinkedIn will require a license to continue operating in the country, with the minister saying that he has asked the MCMC to review whether LinkedIn has more than eight million users in Malaysia and if it is considered a social media platform, reported Bloomberg. 

Meanwhile, Meta is set to receive its license soon. The platform, which owns Facebook, Instagram and WhatsApp, will receive approval soon after communications regulators complete their review of several follow-up documents, said Fahmi, reported The Star.  

So far, only three social media players have received their licenses, with messaging platform Telegram being the most recent. The messaging platform was granted the license on 2 January, following behind Tencent and ByteDance. Tencent's WeChat was the first to be granted the class license, followed by ByteDance's video-sharing app, TikTok. 

What is the social media license? 

The social media license mandates that all social media and messaging services with at least eight million registered users in Malaysia must apply for a license. The license is aimed to facilitate revenue-sharing with local content producers and to end harmful and illegal content online.

In a media statement by the MCMC released in August 2024, it emphasised that the licensing requirement was decided based on the need to regulate service providers with significant impact on the Malaysian digital ecosystem. 

"This regulatory framework was introduced as a key step towards a safer online environment, including addressing online gambling, scams and pornography," said the MCMC. 

It added that it has "consistently engaged with a broad spectrum of stakeholders" and will be "undertaking a public inquiring exercise to solicit feedback from all relevant parties to ensure that the final framework is fair, effective and reflective of the needs of both the industry and the public", at the time. 

Failure to obtain a class license under the communications and multimedia act 1998 after the effective date would be considered an offence. 

What is the industry saying?

In conversation with A+M in August 2024, Rengeeta Rendava, founder and managing director of Mad Hat Asia called the crackdown a "big move", adding that it is good that efforts to tackle misinformation and harmful content are being taken. However, Rendava cautions that it should not turn as a tool to suppress free speech. "There’s a real risk that these rules could be used to shut down voices that the government doesn’t agree with, and that’s a slippery slope that must be avoided," she said. 

Rendava's views are echoed amongst many other social media players, including Dan Iskandar, co-founder of DNA Creative Communications who said, "social media has undeniably become a breeding ground for misinformation, hate speech, and cyberbullying, which can have severe consequences for individuals and society. Proactive measures to mitigate these issues are essential."

Dan added that a "delicate balance must be struck" between protecting users from harmful content and safeguarding fundamental rights. This is especially since social media platforms already grapple with content moderation challenges, and government intervention could exacerbate these issues.

Meanwhile, content creators and brands will also have to exercise more responsibility on their respective parts to be more respectful, considerate and understanding of where they operate in, said Wai Sim Liew, general manager of Havas Malaysia. Liew explained that agencies "for the longest time" have been practicing self-regulation and taking steps to pre-empt of supplement governmental rules and guidelines. 

"This change will only cement the need for agencies to continue with what they are doing and work together with the social media providers as well as the government to ensure the collective goal is met," said Liew. 

Moving forward, Steven Yap, head of digital and operations at Kingdom Digital, said that users have to educate themselves on how to evaluate information and to follow trusted brands with blue-tick verification badges. As for agencies, Yap said the focus should be on "building trust for our clients' brands with authentic, credible, and trustworthy content."

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