Meta has publicly challenged Malaysia’s new social media licensing regime, arguing that overly prescriptive rules could hamper innovation and fail to adapt to modern cyber threats. Introduced in January 2025, the regulation mandates licensing for all digital platforms with over eight million local users, with non-compliance carrying penalties of up to RM 500,000 ($118,500) and potential jail sentences for executives.
Officials say the move aims to counter rising online scams, child exploitation, and illegal gambling activities, which have seen over half a million posts removed since 2022. The Malaysian Communications and Multimedia Commission reports that most of this content involved unlicensed gambling and online fraud.
Meta’s director of public policy, Rafael Frankel, expressed concern that rigid frameworks could become obsolete as cybercriminals evolve. “Criminal networks are well-funded, sophisticated, and adaptable. Narrow compliance won’t solve that,” he said. Despite tensions, Meta has committed to further discussions with the government and emphasized its pre-existing safety measures, including transparency reports and advanced detection systems.
The standoff reflects a growing global challenge: balancing effective digital governance with innovation and user privacy. As Malaysia explores additional youth-protection policies and restrictions on underage smartphone use, industry experts warn that excessive regulation may drive users toward less secure, unregulated platforms. Constructive engagement, rather than confrontation, may be key to achieving both security and freedom online.
