This article first appeared in Digital Edge, The Edge Malaysia Weekly on July 13, 2026 - July 19, 2026

Since June 1, children below the age of 16 in Malaysia have been prohibited from holding accounts on all major social media platforms under new child online safety rules to shield minors from cyberbullying, predatory algorithms and the exploitation of their personal data. But the move has also brought increased scrutiny to the booming, multibillion-dollar kidfluencer economy, raising questions about its future and whether existing laws provide adequate regulatory oversight on commercial exploitation.

“Kidfluencer” is the industry lingo for children who build online audiences by creating content, often through paid partnerships and brand endorsements. There are no reliable statistics on the size of the industry at present, except that it could be worth more than US$100 billion (RM408 billion) globally a year, given that is one of the fastest-growing segments of the creator industry.

According to digital marketing agency Amra & Elma, top child-focused YouTube channels collectively attract more than 150 billion views a year, while brands are expected to spend over US$2.4 billion on family and Generation Alpha influencer campaigns this year, spanning toys, gaming, fashion and education. Some have also built merchandise, licensing and streaming businesses that generate eight-figure annual revenues before reaching adulthood.

In its New Frontiers in Child Labour: Why Digital Risks Demand Urgent Attention report published in February, the United Nations Children’s Fund (Unicef) highlighted how the digital environment has created new and often hidden forms of child labour.

Digital Edge speaks to experts to better understand what constitutes “digital child labour” and how existing safeguards may be falling short.

Work or services performed by children that meet internationally recognised definitions of child labour and are enabled, organised, mediated or amplified through digital technologies constitute digital child labour.

These may involve platforms, applications, networks, algorithms, data systems and digital payment infrastructures.

At present, there is no internationally agreed legal definition of digital child labour.

Due to an underlying lack of conceptual clarity about what constitutes digital child labour and because much digital work takes place outside traditional labour market settings, it falls beyond the visibility of systems that would normally detect, regulate or prevent child labour.

Unicef representative to Malaysia Robert Gass says online activity is not generically harmful. However, it only becomes exploitative when a child’s participation is shaped by commercial interests and takes place without meaningful safeguards for their rights, agency and well-being.

This includes situations where it interferes with their right to education, health, rest and play.

“The key issue is not simply whether a child is creating content, engaged in digital freelancing and microtasking or partaking in competitive e-sports, but whether they have real agency,” says Gass.

In many cases, children may not fully understand how their data, image or content is being used or monetised, nor have control over those processes. This imbalance creates conditions where exploitation can occur, even if it is not immediately visible, adds Gass.

According to the International Labour Organization, not all work done by children should be classified as child labour that is to be targeted for elimination. The participation of children or adolescents above the minimum age for admission to employment in work that does not affect their health and personal development, or interfere with their schooling, is generally regarded as being something positive.

This includes activities such as assisting in a family business or earning pocket money outside school hours and during school holidays. These kinds of activities contribute to children’s development and to the welfare of their families; they provide the youngsters skills and experience and help prepare them to be productive members of society during their adult life.

In Malaysia, the Children and Young Persons (Employment) Act 1966 (1966 Act) prohibits children and young persons from undertaking hazardous work or employment except in limited circumstances. These include light work in a family business, approved roles in public entertainment, government-sponsored training or educational programmes and apprenticeships approved by the director general.

France introduced a law in 2020 to protect child social media influencers. It applies to under-16s who spend significant time creating monetised online content, regulating their working hours and ensuring they receive the same protections as child actors and models. Their earnings must also be placed in a protected bank account until they reach adulthood.

In the US, Illinois became one of the first states to introduce legislation protecting children featured in influencer content. Its Child Labor Law of 2024 covers monetised online content involving minors, requiring creators to keep records of content and earnings. It also mandates that a portion of revenue generated from content featuring children be placed in a trust for the child until he or she reaches adulthood, helping to safeguard their earnings and prevent exploitation.

However, many online activities are often framed as play or participation, even when they begin to resemble work. This blurs the line between acceptable activities, permitted light work and child labour, says Gass.

“As digital technologies increasingly mediate how we work and play, there is a need for greater clarity on how existing child labour standards apply in these new contexts.

“This points to an important role for institutions such as the Ministry of Human Resources, as well as regulatory and child protection agencies in strengthening the policy response.”

Gass says greater attention must be paid to how commercial systems, including social media platforms and advertising ecosystems, interact with children’s online activity.

According to the Unicef report, children whose images, voices or performances are monetised through advertisements, sponsorships or affiliate links on digital platforms fall within the scope of digital child labour.

Such activities are often organised or managed by parents or caregivers. They include children’s participation in influencer marketing through commercial sharenting, family vlogging and child-led “kidfluencing”.

This may amount to child labour if brand collaborations and platform incentives create sustained work demands that disrupt schooling, or if exposure, harassment and the loss of privacy or dignity harm a child’s development, particularly for younger children who have little ability to refuse participation.

Currently, under the 1966 Act, there are no specific laws that govern digital child labour or child content creators, confirms Richard Wong Chun Kiat, co-founder and principal partner at Wong Partnership Advocates and Solicitors.

“First and foremost, we have to recognise child content creation as a form of work. This is the most primary issue, because when Malaysia legalises this and recognises child content creation monetisation, then it can constitute a form of labour which will then come under the employment law or Act,” he says.

This is important because once content creation is recognised as a form of work, it is equally important to safeguard the earnings generated by child content creators.

Wong proposes that Malaysia require a portion of the income earned from children’s online activities to be placed in a protected trust or savings account. The funds could be managed by the parents or legal guardians until the child reaches adulthood at 18, after which the child would assume control of the earnings.

“This measure would help protect the child’s financial interests [in the long run],” he says.

Accountability must be clearly defined across the entire digital value chain, with stronger obligations placed on those who design and profit from digital systems, says Gass.

“Public authorities should establish enforceable standards and ensure compliance. Platforms must take primary responsibility for creating safe environments through design, including addressing how algorithms, monetisation features and data practices affect children. Brands and advertisers should be held accountable if their campaigns incentivise or benefit from the exploitation of children,” he says.

Additionally, parents and caregivers play an important role, but in the current landscape, too much burden is placed on individuals, while systemic risks remain insufficiently addressed.

“What is needed is a more coordinated regulatory framework that connects labour frameworks with complementary areas such as consumer protection, advertising standards, online safety, data protection and governance, and platform regulation,” says Gass.

“Strengthening protection will require collaboration across sectors, including online safety and technology regulators, justice systems, child protection agencies, and industry. The framework must be backed by clear standards and accountability mechanisms to ensure that child protection is consistently upheld across all parts of the ecosystem.”

See also 'Emerging digital child labour risks' infographic on next page

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