How The MCMC Has Become The Most Powerful Government Agency In Malaysia – Analysis

Murray Hunter


How The MCMC Has Become The Most Powerful Government Agency In Malaysia – Analysis


Nov 11, 2024





The Malaysian Communication and Multimedia Commission (MCMC) is arguably becoming the most powerful government agency under the Anwar Ibrahim administration. The MCMC power, responsibilities, and influence spans many areas that affect citizens on a daily basis. The MCMC was very much in the background until the ‘unity government’, as it is called, started its term in December 2022.

The commission, under the chairmanship of UMNO political stalwart Salim Fateh Din, and his minister Fahmi Fadzil have been in the news, almost on a weekly basis. Minister Fahmi’s recent admission over the controversial tender decision to appoint U Mobile as Malaysia’s second 5G network operator, that such an important national decision was made solely by the MCMC, indicates the ‘unchecked’ power the commission has.

In the light of heavy and widespread criticisms that the MCMC has favoured political cronies in awarding tenders, as well as being overly heavy handed and politically biased in the governance of the internet and media, its important to examine the structure, function, and abuses of the organization.

The MCMC was created in 1998 under the Malaysian Communications and Multimedia Act 1998, under former prime minister Mahathir Mohemad, who promised the internet in Malaysia would never be censored. The MCMC is under the purview of the Communications Ministry, with Ahmad Fahmi Mohamed Fadzil as minister.

The MCMC budget is unknown, as funding within all ministries are itemised as programs, rather than what particular agencies and departments receive. The total budget allocation to the Ministry of Communications is RM 2.55 billion. Looking at program allocation, the MCMC would be expected to receive a major chuck of these allocations, somewhere near to the size of the Malaysian Religious Development Department (JAKIM). The 2022 annual report shows the MCMC holds RM 4.783 billion in assets, indicating a massive organization size.

The powers and responsibilities of the MCMC have grown since 1998. In 2010 under the Postal Services Act (PSA 2012), the MCMC took over responsibility for overseeing and regulating postal and courier services in Malaysia. This includes the issuance of postage stamps and licencing of couriers. The MCMC is totally responsible for implementing government broadband objectives and strategies. The MCMC regulates the framework by which telecommunications, broadcasting, and on-line activities are conducted. This includes the responsibility for the licensing of Network facilities Providers, network service providers, application service providers, and content applications service providers. The MCMC grants licenses to companies exporting digital equipment. The MCMC licenses training providers in the area of digital communications, and conducts its own set of courses.

According to the MCMC Annual report, the MCMC received an income of RM 1.37 billion from all of the above activities. The MCMC has offices in each state.

The MCMC conducts its own research, hosts events to promote research, and provides digital research grants to research institutions and corporations to develop policies and programs to promote digital inclusion.
Controversies involving the MCMC since 2022


Since the appointment of the Anwar administration in December 2022, the MCMC has been involved in a number of controversies. These include the recent awarding of the second 5G network, surveillance and monitoring of citizens, media control, social media censorship, and politically appointed leadership.
The award of the second 5G service network license


The recent awarding to the second 5G license to U Mobile has received wide criticism. U Mobile was the smallest bidder for the license in the restricted tender, which has raised claims of cronyism. This is especially the case when the Yang Di-Petuan Agong or king was a major shareholder in U Mobile, owning 22.3 percent of the company. The MCMC press statement awarding the network to U Mobile, specifically mentioned that U Mobile could collaborate with other companies leading to claims this was an ‘ali-baba’ deal, which may be sub-contracted to other parties. This led to an attempt by the MCMC to explain the reasons for their decision, which is very unusual for the commission to do. The minister of communication Fahmi personally stepped back from the issue by stating he had no involvement in the decision.

Malaysians have not been informed about how much U Mobile will pay the MCMC for the license, due to the opaque nature of selection of the network provider. Other bidders for the license have publicly complained and requested the MCMC account for the criteria used in awarding the contract to U Mobile. The only way citizens will ever have any idea of how much was paid will be by making an estimate of the MCMC’s revenue, based upon previous years income in the 2024 annual report, which is not expected to be released until well after 2026.

Use of Israeli Pegasus ease-dropping software

The MCMC is finalising the process of building a ‘fake news’ verifier for the social media app WhatsApp. The MCMC is collaborating with Meta, a foreign owned company, which undertakes work for the US intelligence community.

Within part of the new CHATBOT system the MCMC is creating, powerful AI software that uses metadata to be able to ‘zero in’ on ‘persons of interest’ is incorporated. The system will be able to find the political views of any individual it desires, and then alert police to arrest these people. This new system will complement the Israeli Pegasus ease-dropping software currently in use by law enforcement agencies in Malaysia.

This is an illegal and massive breath of privacy, beyond any public scrutiny.

Control and censorship of social media

The MCMC has recently published a code of conduct for internet messaging providers service providers and social media service providers. It is in the process of discussing the code of conduct with service providers and the public. This is in conjunction with the proposal to license social media platforms in 2025. This is being resisted by companies such as Google, Meta, and X (formally Twitter), which wrote an open letter to prime minister Anwar Ibrahim. The letter claims the licensing may ‘stifle innovation and competition’, leaving platforms under great uncertainty.

At the individual user level, MCMC officers (sometimes in collaboration with the police) call in individual users for interview concerning comments users make, over what the MCMC defines as infringements of the 3R (race, religion, and royalty). This is not just restricted to the public at large, members of parliament are also being summoned for interviews. During these interviews mobile phones and other communication equipment are confiscated in raids on premises. In addition pictures of interviews are published on the MCMC website, amounting to what could be seen as ‘guilt by accusation’.

Such practices have been common over the last 12 months. Critics as labelled this practice as intimidation, as only few occasions have these interviews led to any prosecution.

In addition, the MCMC has been issuing ‘take down’ notices to social media platforms over what it defines as defamatory, false, or obscene. According to Tik Tok, the MCMC has submitted the highest takedown request in the world during 2023, which led to 1,862 content takedowns in the second half of 2023.

The MCMC and the Malaysian Islamic Development Department (JAKIM) have a special collaborative unit in the MCMC that monitors insults against Islam and the spending of deviant Islam, as defined by JAKIM.

Online news portals

The MCMC has put pressure on online news portals to takedown any posts that it defines as infringing the 3R ban. There are reports the MCMC has also directed news portals as to which columnists and author’s of ‘letters to the editor’ should not be carried by the portals.

In general, news portals are struggling financially, where the government, possibily through the MCMC has offered some portals financial assistance.

In the Reporters without Borders (RSF) Press Freedom Index 2024, Malaysia fell 34 places from 73 to 109, indicating a loss of freedom of speech in Malaysia. The RSF specifically mentioned the Communications and Multimedia Act (administrated by the MCMC), as often being used to curb what authorities call ‘fake news’.

Political leadership

Political appointments to GLCs and government agencies has been a contentious issue in Malaysia. The MCMC is no different and the current chairman was appointed by the former UMNO led government and reappointed in March 2023 by the current government. To have partisan leadership in an agency that regulates ‘freedom of speech and political ideas’ is flaunt with conflict of interest. This is a danger to any healthy democracy that is reflected in the fall of Malaysia in the RSF Freedom of Speech Index last year.

There needs to be an ombudsman appointed to oversee complaints about the MCMC, particularly due to the pseudo-judiciary role it is carving out for itself, and unchecked power to define what constitutes an offense under the Communications and Multi-media Act.