Database

According to the Malaysian Communications and Multimedia Commission (MCMC) guidelines, there is a licence requirement for Network Facilities Provider (NFP), Network Services Provider (NSP), Content Applications Service Provider, Applications Service Provider (ASP). In assessing the shareholding structure of an applicant, the MCMC takes into account the need to encourage more local small and medium size industries of Malaysian origin in the local information and communications technology industry.

It is reported that packet filtering is being applied to check for text in hostname header, video ID and URL to block/delay access to sites. In 2015, it was reported by the news that YouTube videos and several Facebook group pages that contest or mock the government as well as the Malaysian website Malaysiakini were filtered.

In January 2016, Medium, an online website that allows users including news websites to publish sharable content was blocked in Malaysia after it refused a request by the Malaysian Communications and Multimedia Commission (MCMC) to remove an article about Prime Minister Najib Razak . The MCMC claimed that the article contained false content that could affect social stability and undermine the prime minister and government.

The Sedition Act (amended in 2015) has created worries for censorship and blocking purposes. The US State Department has acknowledged that "particularly worrying are new provisions that increase penalties – including for first-time offenders – and could make sharing allegedly seditious material on social media a crime".

The Communications and Multimedia Act is related to censorship and free speech, but it is reported that its broad application is a restriction for digital companies, especially social media. The Act gives the Malaysian Communications and Multimedia Commission (MCMC) a broad authority to regulate online speech, providing that “no content applications service provider, or other person using a content applications service, shall provide content which is indecent, obscene, false, menacing, or offensive in character with intent to annoy, abuse, threaten or harass any person”.

According to Freedom House, by July 2013, government officials confirmed that 6,640 sites had been blocked since 2008. In February and March 2016, the Malaysian Communications and Multimedia Commission (MCMC) blocked three news websites and three socio-political blogs which published critical information about corruption allegations on Prime Minister Najib Razak. The websites which were blocked include the foreign-owned Medium, the Asia Sentinel as well as blogs such as OutSyed The Box, Din Turtle and Minaq Jingo Fotopages.

The Copyright Amendments Act provides a safe harbor provision for internet intermediary liability for copyright infringement. Internet Services Providers (ISPs) and content aggregators are provided immunity from liability for copyright infringement if they protect copyright owners by removing or disabling access to the infringing content.

The Personal Data Protection Standards 2015, which came into force in December 2015, require data users to delete or dispose of data that is no longer needed for its purposes, and in particular to dispose personal data and data collection forms within fourteen days after the relevant commercial transaction has been completed.

Under the Personal Data Protection Act, the data controller must ensure that all personal information is destroyed or permanently deleted if it is no longer required for the purpose in which it was collected.

The Personal Data Protection Act (PDPA) does not permit a data user to transfer any personal data out of Malaysia. However, the Act offers a set of exceptions, permitting the transfer of data abroad under certain conditions. The transfer is allowed if:
- the data subject has given his consent to the transfer;
- the transfer is necessary for the performance of a contract between the data subject and the data user;
- the transfer is necessary for the conclusion or performance of a contract between the data user and a third party that is either entered into at the request of the data subject or in his interest;
- the transfer is in the exercise of or to defend a legal right;
- the transfer mitigates adverse actions against the data subjects;
- reasonable precautions and all due diligence to ensure compliance to conditions of the Act were taken; or
- the transfer was necessary for the protection the data subject’s vital interests or for the public interest as determined by the Minister.

While officially entered into force in November 2013, the PDPA has not yet been enforced.

There are reports claiming that the Malaysian Cabinet decided to ban the hiring of new foreign workers. In addition, it was reported that the Cabinet had approved a measure to force companies to fire their foreign workers first. The latter policy is often referred to as the "foreign workers first out policy." It is unclear whether this practice is still in place.

For intra-corporate transferees (ICT), contractual service suppliers (CSS) as well as independent service suppliers (ISS), the so-called "Director-General" may, where she/he deems appropriate and where in the interests of public security or by reason of any economic, industrial, social, educational or other conditions in Malaysia:
- limit the number of persons of any class who may enter Malaysia within any period specified in the order, or
- limit the period during which any person or class of persons entering or re-entering Malaysia may remain therein.

According to the Malaysian Communications and Multimedia Commission (MCM) guidelines, there is a licence requirement for Network Facilities Provider (NFP), Network Services Provider (NSP), Content Applications Service Provider, Applications Service Provider (ASP).

Telekom Malaysia, the incumbent telecommunications operator in Malaysia, is a partially owned by the Government (28.93%).

Malaysia made limited GATS commitments on most basic telecommunications services and it only partially adopted the WTO Reference Paper on Basic Telecommunications.

In Malaysia, the telecommunications market is open to competition. However, to date, the full liberalization of the last mile is still in process and is expected to be completed in 2018.