Government Reviews Proposals to Regulate Social Media and Combat Online Scams

Background

The Malaysian government is reviewing proposals to amend digital-related laws to regulate social media and combat online scams and fraud. This move comes as a response to the rising prevalence of online scams in the country, which have resulted in losses exceeding RM1 billion.

Proposed Amendments

According to Prime Minister Datuk Seri Anwar Ibrahim, the proposed amendments include making telecommunications companies one of the entities responsible for combating online scams and fraud. This will be done in coordination with Bank Negara Malaysia (BNM).

Coordination with BNM

“BNM is coordinating this effort. Telcos have been informed about the proposal to amend digital laws to regulate social media because social media platforms are a major avenue for financial scams and other related issues,” said Anwar.

Responsibility of Telcos

Maybank Group CEO Datuk Khairussaleh Ramli, who was a panellist at the Ilmuwan Malaysia MADANI KPT Forum Series 4: Leveraging Technology in Financial Services to Drive Prosperity and Inclusivity, urged that telcos be made accountable for online scam crimes. He argued that telcos have a role to play in preventing online scams, as they are responsible for providing the infrastructure for these transactions.

Value Chain

“When you look at online scams, as far as the value chain is concerned, it’s not just the bank. Before they (customers) even want to get to the bank, they buy a phone and a phone line. All these transactions go through telephone lines, (so) we need telcos to also take responsibility,” said Ramli.

Regulation in Singapore

Ramli also cited Singapore as an example of a country that regulates telcos to prevent online scams. In Singapore, the authorities have included telcos as a party responsible for combating online scams, as they have access to information about phone owners.

Concerns and Evaluation

Anwar expressed concerns that the proposed amendments might appear too stringent, but emphasized the need to evaluate the proposals carefully. “So this is being carefully monitored. However, our concern is the reaction that the proposed amendments might appear too stringent. But we need to evaluate this,” he said.

Conclusion

The Malaysian government’s move to regulate social media and combat online scams is a step in the right direction. By making telcos accountable for online scam crimes, the government can help prevent these crimes and protect ordinary citizens from financial losses.

FAQs

Q: What is the purpose of the proposed amendments to digital-related laws?
A: The proposed amendments aim to regulate social media and combat online scams and fraud.

Q: Who will be responsible for combating online scams and fraud?
A: Telecommunications companies will be one of the entities responsible for combating online scams and fraud, in coordination with Bank Negara Malaysia (BNM).

Q: Why are telcos being made accountable for online scam crimes?
A: Telcos have a role to play in preventing online scams, as they are responsible for providing the infrastructure for these transactions.

Q: Is this a new approach to combating online scams?
A: Yes, this is a new approach that takes into account the value chain of online transactions and the role of telcos in preventing online scams.