This article first appeared in The Edge Malaysia Weekly on September 2, 2024 - September 8, 2024

As expected, large technology companies are resisting the government’s deadline to implement a licensing regime starting Jan 1 next year.

The Asia Internet Coalition (AIC) in a 12-page letter to Prime Minister Datuk Seri Anwar Ibrahim has listed a number of reasons for why the licensing of technology companies is not productive to the country’s economic growth, how it adds more barriers to operations and curtails freedom of speech and expression.

Primarily, it is seeking a delay in the implementation of the licensing regime on the grounds that the industry lacks clarity on its obligations under the new regulations. The coalition wants a formal public consultation on the matter and a grace period of 12 months.

The letter from the AIC itself raises questions as to whether the views expressed were sanctioned by all its members.

Grab, which has a large presence in the region, immediately distanced itself from the letter. It stated that the licensing regime does not impact the business of technology companies such as itself.

Apart from Grab, the AIC’s members include the likes of Amazon, Rakuten, FedEx, Apple, Zalora and Booking.com. These companies offer products and services on their platforms. Their business would not be affected by the licensing requirement.

So, do they share Grab’s sentiment?

The licensing requirements are there to mainly instil some degree of accountability in the owners of social media platforms and messaging apps for their content. The government wants them to do more to combat cyber-bullying, misinformation, online scams and the dissemination of child sexual abuse material on their platforms.

What the government seeks is not new. Laws regulating content on social media platforms and messaging apps are already in place in Singapore, the EU and the UK.

New laws are always frowned upon. But considering the fact that social media platforms and messaging apps are increasingly being abused to the extent that they are harmful to innocent users, there should not be any delay in implementing the licensing requirements.

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