Malaysia and Singapore are intensifying their regulatory efforts on popular social media, messaging platforms, and online marketplaces to address the rising incidents of online scams and protect minors. Both countries are implementing new measures aimed at enhancing online safety amid a surge in cybercrime.
Malaysia is set to introduce a licensing requirement for major online platforms by the end of the year. This new regulation will require platforms like Facebook, X (formerly Twitter), and TikTok, as well as messaging services such as WhatsApp, to register and renew their licenses annually. Non-compliance will render these platforms illegal, with potential penalties of up to 500,000 ringgit (approximately $107,000). The Malaysian Communications and Multimedia Commission (MCMC) has stated that the goal of these regulations is to ensure a safer online environment, especially for children. Platforms that reach more than 25% of Malaysia’s population, or around 8 million people, will be subject to this framework. Additionally, the MCMC will implement a “kill switch” mechanism to remove content deemed harmful.
Current Malaysian laws address various online harms but do not extend to operators outside the country. Furthermore, there are no existing legal obligations for platforms to proactively combat online harms. The MCMC has highlighted that over 70% of its content removal requests relate to online scams and gambling. In 2022, Malaysian police reported losses of 2.5 billion ringgit due to online scams. The MCMC is in discussions with online platform providers to ensure they have adequate time to comply with these new regulations.
Singapore is also tackling the rise in online fraud, particularly e-commerce scams, which saw a record 46,563 cases in 2023, a 46.8% increase from 2022, with losses amounting to 651.8 million Singapore dollars (about $486 million). To address this, Singapore’s Ministry of Home Affairs issued new codes of practice requiring platforms like Meta’s Facebook and the local marketplace Carousell to verify the identities of risky sellers. If scams do not decrease significantly by the end of the year, the Ministry plans to mandate verification for all sellers.
These codes of practice are part of the Online Criminal Harms Act, enacted last year. By the end of 2024, social media and messaging services, including Facebook, Instagram, Telegram, WeChat, and WhatsApp, must implement systems to detect and report scams and malicious activities. This will involve submitting annual reports to the authorities.
Carousell has acknowledged the need for these new measures, emphasizing the balance between stringent safety policies and maintaining a convenient user experience. Kaspersky’s Adrian Hia supports these initiatives, noting that they are critical in countering sophisticated cyber threats. Hia highlights phishing as a particularly prevalent form of cybercrime due to its minimal effort and high success rate.
While there is broad support for tighter regulations to combat online scams, there are concerns about potential overreach. Experts like Sabariah Mohamed Salleh from the National University of Malaysia worry that increased regulatory powers could lead to the suppression of dissenting voices or criticism of the government. Benjamin Loh from Taylor’s University also suggests that additional laws should address other issues such as cyberbullying and the use of cybertroopers.
Both Malaysia and Singapore’s new regulations represent significant steps in enhancing online safety but will require careful implementation and oversight to avoid potential misuse and to ensure they address the evolving landscape of cyber threats effectively.