Malaysia’s social media licensing plan could hurt innovation, SMEs: analysts

[KUALA LUMPUR] Malaysia’s licensing framework that requires social media and messaging platforms with more than eight million users to obtain a licence by Jan 1 next year has sparked plenty of concern, with major tech firms warning it could stifle innovation and hamper the country’s digital economy growth.

While market observers believe investor interest in Malaysia’s tech industry may remain intact, restrictions on social media could create significant barriers to the country’s growth in digital innovation.

A coalition of tech giants – including Meta, Google and Amazon under the Asia Internet Coalition (AIC) – wrote an open letter to Prime Minister Anwar Ibrahim in August to express concern about the licensing regime, cautioning over its long-term negative effects on Malaysia’s tech ecosystem.