KUALA LUMPUR (Jan 28): The Malaysian Communications and Multimedia Commission (MCMC) has reiterated that tighter controls on prepaid SIM registration remain a necessary and proportionate response to telecommunications-related fraud, despite concerns that scams may evolve beyond SIM-based abuse.
Responding to public feedback, the commission acknowledged views that fraud could increasingly shift to over-the-top (OTT) platforms, foreign SIM cards, network-level exploitation or device compromise. It agreed that fraud is adaptive and multi-faceted and that SIM-based measures alone cannot address every fraud vector.
However, enforcement data and intelligence consistently show that a significant portion of telecom-enabled fraud continues to originate from improperly registered prepaid SIM cards. These cases frequently involve non-Malaysian individuals and are often enabled by weak dealer oversight, identity misuse and circumvention of registration requirements. As a result, the MCMC said strengthening prepaid SIM registration integrity remains a critical regulatory intervention within its statutory mandate.
The MCMC on Wednesday (Jan 28) released the Public Inquiry (PI) Report on the mandatory standards for the registration of end-users of prepaid public cellular services, in accordance with section 65 of the Communication and Multimedia Act 1998.
The commission stressed that the mandatory standards are not designed to combat all forms of fraud but to eliminate key vulnerabilities within communications services. The measures are intended to support wider enforcement actions, inter-agency collaboration and future policy initiatives targeting other forms of fraudulent activity.
Dealer governance was highlighted as a central factor in ensuring registration integrity. Under the mandatory standards and the Common Code of Conduct, the MCMC has introduced enhanced dealer onboarding requirements, improved traceability, stronger audit controls and clearer suspension and enforcement mechanisms. These steps aim to directly address dealer misconduct, negligence and non-compliance which the commission views as major contributors to fraudulent SIM registrations.
The commission also clarified that limits on the number of prepaid SIM cards apply only to new registrations and will not be imposed retrospectively. End-users who registered multiple prepaid numbers before the Mandatory Standards take effect will retain their right to port out those numbers under the existing Mobile Number Portability (MNP) framework.
However, the MCMC noted that while existing numbers remain unaffected, users who have exceeded the SIM limit may face restrictions when attempting to port in additional prepaid numbers. The MNP process will continue to operate independently of SIM limits for already registered numbers.
The MCMC added that feedback received indicated broad and consistent support from both industry and the public, reflecting a shared recognition that a robust requirement is needed to protect consumers and public trust in digital services.
The public inquiry was carried out under the Communications and Multimedia Act 1998 after the release of the public inquiry paper on Oct 14, 2025. It ran for 45 days until Nov 28, 2025, during which the MCMC received 15 submissions — 10 from service providers and five from the public.