Tech firms must comply with Malaysia's laws, minister says, amid backlash over social media licensing plan

KUALA LUMPUR (Reuters) -Tech companies must comply with local laws to continue operating in Malaysia, a minister said on Tuesday, after an industry group urged the government to pause a plan to require social media platforms to apply for a regulatory licence.

The Asia Internet Coalition (AIC) - whose members include Google, Meta and X - had made the call in an open letter to Prime Minister Anwar Ibrahim, citing a lack of clarity over the proposed regulations.

Communications Minister Fahmi Fadzil said the government was ready to discuss the proposed regulations with the AIC and other industry groups but had no plans to delay their implementation, aimed at tackling rising cybercrime.

Under the plan, social media platforms and messaging services with more than eight million users would be required to obtain a licence and could face legal action if they failed to do so by Jan. 1, 2025.

"Big tech companies are big but our laws are bigger. If they want to operate in Malaysia, they must respect and comply with our laws," Fahmi told reporters, adding earlier talks with representatives of social media firms on the plan had been positive.

The AIC letter, originally dated Aug. 23, was taken down from its website late on Monday. Ride-hailing firm Grab, also a member of the group, said separately on the same day that it had not been consulted on the letter's contents.

A new version of the letter, dated Aug. 26, was later posted to AIC's website with several sentences removed, including a reference to the government's plan being "unworkable" for the industry.

The letter also removed a list of the AIC's member companies, which remains available on the group's website.

In a statement on Tuesday, Malaysia's communications regulator said it would conduct a public inquiry and was seeking feedback on the regulation from industry players and the public.

In its letter, the AIC had said an absence of formal public consultations had led to industry uncertainty and concerns over potential unintended consequences from the regulatory license.

(Reporting by Danial Azhar; Writing by Rozanna Latiff; Editing by Martin Petty and Bernadette Baum)