Any social media with more than eight million users in Malaysia will have to get a license from August 1. The enforcement will take effect on January 1, 2025. Any failure to comply with this directive may lead to legal action against the defaulters and possible blacking out. Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi said that stringent enforcement would be carried out to avoid any claims of political motives.

It is, in essence, a regulation against online fraud, scams, cyberbullying, and adult content. Zahid emphasized the part that user responsibility plays. Compliance rates vary, from a high of 88% put up by Instagram to a low of 25% offered by X. The low compliance rates forced this decision.

Impact on Malaysian Businesses Using Social Media

Many Malaysian businesses rely on social media for marketing. Non-compliance could seriously affect those businesses. The bans would encourage businesses to venture into other marketing platforms. Local media could stand to gain in case any platforms face a ban.

Opportunities for Local Media Platforms

It could result in ad money raining down on local newspapers, websites, radio, and TV. Social media has badly disrupted local media earnings. Local media companies lose some RM2 billion every year. The new rules may finally rebalance the landscape of media.

The compliance rates by social media platforms vary. Instagram and Facebook have higher compliance rates; however, the level of fraud is still very high. The MCMC received almost 100,000 complaints in 2024 alone. All these factors call for the new requirements in terms of licensing.

Malaysians need to be prepared for these changes. Businesses and users need to be informed. This is a radical turn of events for Malaysia’s social media approach. Compliance will then be imperative for the platforms and their users.