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Facebook's RM2.5B Malaysian Ad Revenue Fuels Scam Concerns

Facebook's RM2.5B Malaysian Ad Revenue Fuels Scam Concerns

The Sun13-06-2025
PUTRAJAYA: Social media platform Facebook is estimated to have generated between USD15 billion and USD20 billion (USD1=RM4.25) in online advertising revenue in the ASEAN region last year, says Communications Minister Datuk Fahmi Fadzil.
He said the figure included advertisements suspected of promoting scams and online gambling to about 670 million users of the platform in the region.
In Malaysia alone, Fahmi said Facebook generated an estimated RM2.5 billion in revenue last year.
'This is the problem we face — many of the ads they (Facebook) display are scam ads promoting fake investments or so-called 'magical' products that can be bought at very low prices. There's no control over this.
'In fact, just a few weeks ago, my team identified drug and vape (electronic cigarette) sales activities within Facebook groups,' he said during the Communications Ministry's monthly assembly yesterday.
Fahmi said that to date, Facebook had yet to cooperate with the government's social media platform licensing initiative enforced earlier this year.
'They (Facebook) still refuse to be licensed under the licensing system we announced. They are unwilling to cooperate in several areas,' he said.
On Jan 1, the government officially enforced licensing under the Communications and Multimedia Act 1998 (Act 588), aimed at enhancing online safety, protecting users, and strengthening regulatory oversight of internet messaging service providers and social media platforms.
The government's efforts did not stop there, as Parliament passed the Online Safety Act (OnSA) 2024 last December, which will be enforced soon.
'With the enforcement of OnSA, social media platforms like Facebook will be required to comply.
'Issues such as paedophile groups and child sexual abuse material (CSAM) must be eliminated from these platforms, and those involved must be brought to justice,' he said.
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Balancing screen time and safety: The challenge for today's parents
Balancing screen time and safety: The challenge for today's parents

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Balancing screen time and safety: The challenge for today's parents

At what age did you get your first smartphone or sign up for social media? For many adults, it likely happened in their late teens or early twenties, but for kids today, their dive into the digital world often comes much ­earlier, at times even before they start schooling. Countless concerns have been raised on whether children are being exposed to too much, too soon, and the potentially detrimental long-term effects that may come alongside it. Countries like Australia and France have taken a hardline stance on the matter, with France passing a parental consent law for users under 15, and Australia's under-16 ban is set to be enforced in December. French President Emmanuel Macron has even said that the country would impose a further blanket ban on social media use for those under 15, should progress at the EU level to limit teenage screen time lag behind. Meanwhile, Communications Minister Datuk Fahmi Fadzil said back in January this year that the country does not currently have any plans to impose a minimum age requirement when it comes to social media access. He later said in March that any move to impose such a restriction would require a thorough analysis of how it could affect access to information and communication among those impacted, as well as the potential ­psychological and developmental implications. He also noted that most platforms have set 13 years old as a minimum age requirement, and said that the Malaysian government would ­monitor their enforcement. According to Siraj, platforms struggle with effectively enforcing age restrictions. — SIRAJ JALIL According to Siraj Jalil, president of the Malaysia Cyber Consumer Association (MCCA), such monitoring is a step forward, but is still not an ­airtight solution to the issue. 'Globally, platforms struggle to enforce age restrictions effectively, often relying on self-declaration mechanisms that are easily circumvented. 'Enforcement tends to be weak unless backed by strong regulatory requirements and technology-based age assurance. 'Malaysia should expect platforms to strengthen their verification ­systems and should complement this with national efforts to raise awareness among parents and children about the importance of respecting these thresholds,' he said. Srividhya Ganapathy, the co-chairperson of the Child Rights Innovation and Betterment (CRIB) Foundation, on the other hand, advocated for a more serious approach, stressing that ­monitoring alone is not enough. 'In practice, children regularly ­create accounts long before the age of 13, often without any real safeguards in place. The so-called enforcement of age restrictions is inconsistent and largely symbolic. 'Once online, children face a range of risks – cyberbullying being one of the most prevalent. Many children are targeted in private messages or group chats, with little visibility or intervention from adults. For some, the ­bullying continues across multiple platforms, and the lack of a clear ­support or reporting pathway means the harm often goes unnoticed and unaddressed. 'We cannot continue to rely on ­platforms to police themselves. Vague promises of monitoring aren't enough. We need enforceable standards, better age verification, and a proactive, not reactive, approach to safeguarding children online. Children's safety should not be left to the goodwill of corporations,' she said. Tech too soon? From the perspective of those like Srividhya, haphazardly setting an age requirement is not the end of the story. She believes that while such age requirements may serve as a benchmark, there needs to be an overarching strategy that includes measures to ­provide age-appropriate education so that kids learn how to engage the digital world via smartphones and social media when the time eventually comes. Srividhya believes that there needs to be an overarching strategy that includes measures to ­provide age-appropriate education so that kids learn how to engage the digital world via smartphones and social media when the time eventually comes. — Photo by Sanket Mishra on Unsplash 'Outright bans often drive children to access technology in secret, without support or protection. 'Instead, we must equip them with the knowledge and confidence to ­navigate digital spaces safely and responsibly. A minimum age should be the starting point, not the solution. 'We also need to acknowledge the realities faced by Malaysian families. 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'Therefore, while benchmarks are important, the more urgent need is for better education and resources for parents and children to use these technologies responsibly and safely from an early age,' he said. While it's clear that smartphones and social media have a place, ­parental involvement and guidance are crucial, at least according to Allistair Adam Anak Nelson, a ­registered clinical ­psychologist and lecturer at the Taylor's University School of Liberal Arts and Sciences. He noted that research has drawn a link between the excessive use of social media and screen time at an early age with higher levels of ­depression, anxiety, poor sleep, body dissatisfaction and low self-esteem. These concerns are only heightened by exposure to things such as cyberbullying, unrealistic body standards, and the constant need for online ­validation. 'Childhood and early adulthood, roughly from the age of 10 to early 20s, is a time when the brain is still developing, especially in areas related to emotion regulation, self-control, and social awareness. 'This makes young people more vulnerable to the emotional highs and lows of social media. 'Age restrictions merely delay the exposure to age-inappropriate or ­harmful content, as many children can easily bypass them by entering false birthdates. Allistair Adam said thoughtful consideration is needed to develop healthy screen use. — Taylor's University 'Restrictions alone do not address the need for children to learn how to navigate the digital space safely and responsibly,' he said, further stressing the need for digital literacy. Allistair Adam added that it could come in the form of screen time boundaries set by parents, co-viewing content, open communication on media use, and modelling healthy ­digital habits. 'Children need more than just the ability to use a device – they must understand privacy, recognise safe content, and distinguish between reality and fantasy.' Meanwhile Raihan Munira Moh Sani, a lecturer with the Asia Pacific University of Technology and Innovation's School of Psychology (APU), said that these technologies should not be seen as being inherently harmful. 'When assessing a child's readiness for a smartphone or social media access, it is essential to look beyond age and consider developmental ­indicators. 'One important factor is social awareness and empathy, where children should be able to understand the impact of their words and actions on others and demonstrate respectful behaviour in both online and offline peer interactions. 'Equally important is their understanding of boundaries. This includes knowing what is appropriate to share online, recognising the importance of privacy, and being aware of screen time limits. 'These indicators reflect a child's ability to navigate digital spaces responsibly and safely,' she said. Clicking into childhood From Allistair Adam's point of view, there are no hard and fast rules on the 'right' age when it comes to children using things like smartphones, social media, or even engaging in online games. 'Often, smartphones are given to children as a digital pacifier to keep them calm or preoccupied, especially in public settings. 'While this may offer quick relief, developing healthy screen time usage requires more thoughtful consideration,' he said. Raihan Munira advised parents to look beyond age and consider developmental indicators to see if their kids are ready for screen use. — APU There are some guideposts ­available for parents to have a point of reference. For instance, Allistair Adam said that the World Health Organization (WHO) does not ­recommend screen time at all for kids below two years of age, while those aged between two to four should be ­limited to just an hour each day. Raihan Munira, on the other hand, said that the American Academy of Pediatrics recommends that children under 18 months old be kept off screen-based media entirely, except for video chatting. She further said that for children aged 18 to 24 months, any digital ­content should be limited to high-­quality programming viewed together with a parent, while for those aged two to five, screen time should be capped at one hour a day. From age six onwards, parents should set clear, consistent limits on both screen time and content. Vinorra Shaker, the head of the school of psychology at APU, highlighted that Malaysian children are becoming increasingly connected with the digital world, which has turned out to be somewhat of a ­double-edged sword. She said that while Malaysian ­children are generally tech-savvy, with competency in navigating apps, social media platforms, and games, this does not necessarily translate to being able to engage digital spaces safely. 'Compared to children in some developed countries like those in Scandinavia or parts of Western Europe, Malaysian kids often have less structured digital education. 'This means they might be more exposed to online risks such as ­cyberbullying, privacy breaches, or harmful content. A Unicef study even found that while Malaysian youth are confident online, many don't fully understand how to protect themselves from threats. 'The good news is that digital ­literacy programmes are growing in schools, and awareness among ­parents and educators is increasing. From age six onwards, parents should set clear, consistent limits on both screen time and content, said Raihan Munira. — Photo by Vitaly Gariev on Unsplash 'But there's still a gap to close when it comes to teaching children not just how to use technology, but how to use it responsibly and safely,' she said. As Allistair Adam pointed out, 'studies from states such as Kuala Lumpur, Selangor and Kedah show that most preschoolers are already using smartphones and other digital devices regularly'. One of the studies, 'Screen Media Dependency And Its Associated Factors Among Preschool Children In Kuala Lumpur' published in the Malaysian Journal Of Medicine And Health Sciences in May 2023, found that over 65% of preschoolers in Kuala Lumpur show signs of dependence on their devices. 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'But these approaches don't address the core issue: most children are getting online anyway – often unsupervised and unprepared. 'Without national guidelines that put child rights and child realities at the centre, we're just leaving ­families to figure it out on their own,' Srividhya said. For Allistair Adam, it comes down to ensuring that a child is emotionally prepared to engage with the digital world. 'For parents, assessing readiness involves observing whether the child can regulate their emotions, follow rules, manage screen time without being attached, recognise unsafe or inappropriate content, and communicate openly with their parents on their digital use. 'Children should also be able to balance screen time with other important daily activities such as schoolwork, play and family time. 'Policymakers, on the other hand, can support this by ensuring access to early digital literacy education, ­promoting age-appropriate platform design, and developing national guidelines that safeguard children's digital well-being. 'In the end, readiness is not just whether a child has the skills to ­manage screen time but whether they have received the right modelling, guidance, and support to use digital tools wisely – that should be the best indicator,' he said.

Regulating online fraud: Malaysia's OSB vs China's approach
Regulating online fraud: Malaysia's OSB vs China's approach

The Star

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  • The Star

Regulating online fraud: Malaysia's OSB vs China's approach

INITIATED in the 2010s, China's Digital Silk Road (DSR) aims to enhance digital connectivity across nations through infrastructure, trade, finance, people-to-people exchanges and policy coordination. It presents new commercial opportunities for Malaysia by fostering collaboration between Chinese and Malaysian businesses, strengthening Malaysia's digital economy ecosystem. The convergence of China's DSR, the Covid-19 pandemic, and the rapid rise in artificial intelligence (AI) have significantly accelerated the adoption of digital technologies in business processes and operations within Malaysia. However, while digitalisation offers numerous benefits, it has unfortunately also led to a significant surge in online criminal activity. A recent report by The Star revealed that nearly RM600mil was lost to online fraud from January to March, according to the Bukit Aman Commercial Crime Investigation Department. The report highlighted that criminals are exploiting technological advancements and modern lifestyles, using fake digital identities, fraudulent websites, chatbots and deepfakes to deceive victims. Recognising the escalating threat posed by these sophisticated methods, regulatory interventions focused on online content have become a prevailing trend. Malaysia, in line with this trend, passed the Online Safety Bill (OSB) 2024 in December. It is awaiting official gazettement, and its effective date will be determined by Communications Minister Datuk Fahmi Fadzil. The new law aims to enhance online safety in Malaysia by regulating harmful content and establishing duties and obligations for application service providers (those who provide network services such as Internet access), content application service providers (those who provide content such as broadcasting and video streaming), and network service providers (those providing cellular mobile services and bandwidth services) operating within and outside Malaysia. According to Minister in the Prime Minister's Department (Law and Institutional Reforms) Datuk Seri Azalina Othman Said, it applies to licensed application and content service providers such as Instagram, WhatsApp, TikTok and YouTube. The Bill regulates two categories of content: 'harmful content' and 'priority harmful content'. Its First Schedule defines the scope of harmful content, which includes content on financial fraud, excluding content that promotes awareness or education related to financial fraud. The content on financial fraud listed in the First Schedule is also classified as 'priority harmful content' in the Second Schedule. Key duties imposed on service providers include the obligation to implement measures to detect and mitigate harmful content (Section 13), issue user guidelines (Section 14), establish mechanisms for handling user reports of potentially harmful content (Sections 16 and 17), and prepare an Online Safety Plan (Section 20). For priority harmful content, such as financial fraud, service providers must take steps to prevent user access (Section 19). Despite Fahmi's assurance that the government's intention in introducing the OSB is to serve as a measure to combat crime, such as financial fraud, and not to restrict freedom of expression, critics remain concerned about its potential to restrict freedom of expression and be used as a censorship tool by the government. These are valid concerns, particularly considering the vague definition of harmful content in the OSB and the vast powers conferred on a commission reporting to the Communications Ministry. This commentary limits its discussion to the Bill's role concerning content on financial fraud. It is undeniable that unregulated content involving financial fraud, such as online scams, can damage business reputations and cause financial losses. Deputy Communications Minister Teo Nie Ching reported that RM1.224bil was lost to online crimes and scams in Malaysia within the first 10 months of last year, with many victims falling prey to sponsored advertisements on social media platforms. Indeed, a duty should be imposed on service providers to prevent these platforms from profiting from sponsored advertisements involving financial scams, for which they receive payment to promote products or services. Nevertheless, the provisions in the OSB are still lacking when viewed from the perspective of curbing online fraud. In China, the government passed the Anti-Telecom and Online Fraud Law ('ATOF Law') in September 2022. This law is more specific, aiming to prevent, deter and punish telecommunications and online fraud, strengthen efforts against such fraud, and protect the rights and interests of citizens and organisations. It imposes responsibilities on key businesses in the telecommunications, financial, and Internet sectors to prevent fraud risks. Among these requirements, the law requires service providers to verify users' identities before providing a range of services, such as web hosting, content and software distribution, livestreaming and advertising (Article 21). The law also imposes a duty of reasonable care on service providers to monitor, identify, and address the use of their services to commit fraud (Article 25). The ATOF Law provides a model regulation for targeted fraud prevention. While Malaysia and China operate within different legal and cultural frameworks, there are valuable lessons to be learned from China's experience in addressing online fraud. China's preventive measures have contributed to a more secure digital environment for businesses and consumers, minimising the impact of online fraud. While the Malaysian government's efforts to ensure a secure online environment and build trust in the digital ecosystem are laudable, more targeted provisions focused on the specific mechanics of online fraud would be more efficient, like China's ATOF Law, instead of a broad content regulation approach. China's ATOF Law, which emphasises user verification and platform monitoring for fraudulent activities, would allow for a more focused approach to content regulation. It is imperative that the Malaysian government review the adequacy of the OSB in achieving its intended purpose of curbing online crime. To enhance its efficacy, the government could consider incorporating more granular provisions that mandate specific actions from service providers and establish clear and enforceable guidelines and penalties. A well-regulated online environment, one that builds trust and security, can attract foreign investment and facilitate DSR-related collaborations, shaping the long-term trajectory of Malaysia's digital economy. Lai Chooi Ling is a lecturer at Tunku Abdul Rahman University of Management and Technology (TAR UMT). The views expressed here are entirely the writer's own. The SEARCH Scholar Series is a social responsibility programme jointly organised by the South-East Asia Research Centre for Humanities (SEARCH) and TAR UMT.

Liew: PN must offer vision, not just angry noise
Liew: PN must offer vision, not just angry noise

New Straits Times

time2 hours ago

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Liew: PN must offer vision, not just angry noise

KUALA LUMPUR: Malaysia needs an opposition that offers solutions, not just protests, Deputy Investment, Trade and Industry Minister Liew Chin Tong said following a rally demanding Prime Minister Datuk Seri Anwar Ibrahim's resignation. He made the remarks in a Facebook post after the July 26 gathering at Dataran Merdeka, which he said reflected more anger than direction. "Their leaders must understand that being an opposition that only releases anger to manipulate emotions, especially among Malays, will take the country nowhere," he wrote. "Perikatan Nasional (PN) could be a constructive opposition if it chooses to be. This means working with the unity government through parliamentary processes to serve the people." Liew said the rally at Dataran Merdeka, led by Tan Sri Muhyiddin Yassin of Bersatu, trained its criticisms on Anwar's leadership. Despite rallying Pas's core base, it failed to draw support the wider public, he said. Liew said that PN, which holds nearly one-third of the seats in Dewan Rakyat, has the opportunity to play a meaningful role in a healthy democracy — if it chooses to move beyond populist anger. He pointed to the aftermath of the 2020 Sheraton Move as an example of responsible political conduct. Liew said in the wake of the political crisis, DAP's Anthony Loke persuaded party colleagues to work toward stability through bipartisan cooperation with Datuk Seri Ismail Sabri Yaakob's administration, leading to a memorandum of understanding that ensured continuity in government policies. In contrast, he said that PN remains divided and without clear direction. Liew said Bersatu continues to face internal leadership struggles, while Pas appears locked in a rigid ideological stance. Without a coherent vision or practical policy proposals, PN risks alienating broader segments of the electorate. "With no constructive proposals or coherent vision, PN will struggle to appeal beyond its base," he said. "Democracy in Malaysia deserves a better opposition — one that puts the country first," Liew added.

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