Proposed Enhancements to the Communications and Multimedia (Licensing) Regulations 2000

Viewpoints

1 October 2026

Introduction

On 21 September 2026, the Malaysian Communications and Multimedia Commission (“MCMC“) issued a public consultation paper seeking stakeholders’ input on proposed enhancements to the Communications and Multimedia (Licensing) Regulations 2000 (“Licensing Regulations“) (“Proposed Enhancements“). This follows an earlier public consultation on proposed amendments to the Communications and Multimedia Act 1998 (“CMA“). The current public consultation period closes at 12 noon on 20 October 2026.

This Update first examines the key implications of the Proposed Enhancements for stakeholders, followed by a discussion of forward-looking considerations and recommended next steps. It then provides an overview of the proposed changes.

Key Implications: Summary for Stakeholders

The Proposed Enhancements are particularly significant for applications service providers in the more recently regulated areas of cloud services, social media and internet messaging. Such providers should note the following key implications:

Stakeholder Category	Key Implications
Applications service providers (including a cloud service, internet access, social media, internet messaging or IP telephony provider) and other class licensees	Increased fees are proposed for class licences, replacing the current annual registration fee of RM2,500. Definitions of specified services are also proposed to be updated.
Applications service provider operating from outside Malaysia	A new regulatory fee framework is proposed for class licensees operating from outside Malaysia.
Deemed licensees (social media and internet messaging providers)	No registration fee applies. However, new obligations include providing company and business details, descriptions of relevant facilities, services or applications, local representative details, and proof of appointment.
Individual licencees	Licence fees are proposed to increase, except for approval and application fees. The deadline for submitting licence renewal applications is proposed to be extended from 60 days to six months before expiry.
All licensees	The period for individual licensees to submit audited accounts is proposed to be extended from three months to six months after the end of their financial year. Compliance with network security requirements will be a standard licence condition.

Questions and Next Steps: Action Points for Stakeholders

Stakeholder Category	Key Considerations and Recommended Actions
Applications service providers	The removal of obsolete references is welcome, but should the modernisation exercise also address how the framework defines cloud services and artificial intelligence (AI)-enabled offerings? Should the modernisation exercise also codify the regulatory framework for cloud services in the Licensing Regulations, rather than rely on the Information Paper which was last updated in 2024? This could include updating the Exemption Order to clarify the scope of exempted cloud services.
Applications service providers operating from outside Malaysia	How should "operating from outside Malaysia" be assessed? When read together with the local presence requirement of cloud services, will this encourage cloud service providers to move its operating entity and data centres outside of Malaysia altogether?
Deemed licensees	Given the reporting obligations, deemed licensees – often large-scale providers with multiple service offerings – should consider incorporating a local subsidiary to hold an applications service provider class licence and limit its scope of exposure, including disclosure requirements and Universal Service Provision (USP) contributions. Trusted local representatives should be appointed to serve as points of contact for regulatory correspondence.
All licensees	The Information and Network Security – Maturity Index assessment exercise earlier this year signals increasing regulatory emphasis on the security and resilience of communications infrastructure. The introduction of a new standard licence condition on network security compliance may also indicate that the Guidelines on Information and Network Security for the Communications and Multimedia Industry are expected to come into force in the near future.

Detailed Analysis of the Proposed Enhancements

The Proposed Enhancements are organised under three themes. The key elements under each theme are set out below.

Key Elements	Proposed Enhancements
Theme 1: Alignment with the CMA Recent amendments to the CMA require corresponding updates to the Licensing Regulations to maintain consistency between the CMA and its subsidiary legislation.
Renewal of individual licences	The deadline for submitting an individual licence renewal application is proposed to be extended from 60 days to six months before licence expiry, in alignment with section 34(1) of the CMA.
Deemed licensing framework	New provisions will expressly set out obligations for deemed licensees under the deeming approach introduced by section 46A of the CMA. These include providing company and business details, descriptions of relevant facilities, services or applications, local representative details and proof of appointment. Deemed licensees will not be subject to the registration fee requirements applicable to voluntarily registered class licensees.
Theme 2: Licence Fee Framework Review The existing licensing fee framework has remained largely unchanged since 2000. MCMC considers a review necessary to ensure that fees remain commensurate with regulatory activities and resources required for effective licensing administration, compliance monitoring, consumer protection and enforcement.
Review of fees under the individual licence framework	A uniform increase is proposed for most fee types under Table A of the First Schedule. The approval and application fees are excluded, having recently been revised as part of the annual individual licence fee revision.
Review of the class licence fee framework	All fees under the Second Schedule will be reviewed, with a uniform increase proposed for most fee types. The registration fee will be differentiated into two categories: (i) a common rate for Network Service Providers (NSP), Network Facilities Providers (NFP) and Content Applications Service Providers (CASP) licences; and (ii) a separate, higher rate for Applications Service Provider ("ASP") licences. The higher ASP rate reflects the comparatively higher regulatory costs associated with the category’s direct interface with end-users.
New regulatory fee for overseas class licensees	A new regulatory fee framework is proposed for class licensees operating from outside Malaysia. This is intended to promote a level playing field by ensuring that all licensees providing services in Malaysia are subject to appropriate and equitable regulatory obligations, regardless of where they operate. The proposed mechanism would also allow the Minister of Communications to prescribe regulatory fees based on the level of regulatory oversight and other relevant considerations, providing the regulator flexibility to respond to evolving developments in industry.
Theme 3: Licensing Framework Modernisation and Updates This theme focuses on updating outdated definitions, strengthening the regulatory basis for network security, and aligning the framework with current legislation.
Modernisation of licensing definitions	Selected definitions under Regulation 2 will be updated to remove references to obsolete technologies and legacy services, while maintaining a technology-neutral framework. The proposed changes include: 1. removing reference to 600 short codes in the definition of "audiotext hosting service"; 2. removing reference to dial-up connectivity in the definition of "internet access service"; 3. broadening the definition of "messaging service" to cover messages in "any form" rather than "multimedia form"; 4. revising the definition of "public cellular service" to allow voice and data services to be provided either together or separately; and 5. removing references to telegram, telex, ISDN and ATM services from the definition of "public switched data service".
Network security requirements	Compliance with relevant network security requirements will become a standard licence condition for all individual and class licensees, regardless of licence category. Currently, this condition is imposed only through special licence conditions for newly issued and renewed licences.
Audited accounts submission timeline	The period for individual licensees to submit audited accounts to the MCMC is proposed to be extended from three months to six months after the end of their financial year, aligning the submission timeline with existing reporting and filing requirements under the Companies Act 2016.

Concluding Words

The Proposed Enhancements modernise Malaysia’s telecommunications licensing framework. Stakeholders should review the consultation paper, assess how the Proposed Enhancements may affect their licensing, compliance and operational arrangements, and consider submitting responses before the consultation deadline of 12 noon on 20 October 2026.

Please contact any of the Christopher & Lee Ong partners set out on this page if you require assistance or clarification regarding the Proposed Enhancements, the consultation process, or any other technology, media and telecommunications (“TMT“) or data protection matter.

For regional TMT or data protection matters, please see Rajah & Tann Asia’s Technology, Media & Telecommunications Practice for more information.

Contribution Note:

This Legal Update is contributed by the listed Contact Partners, with the assistance of Associate Joy Lee.

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