The Online Safety Act 2025: Navigating Malaysia’s New High-Stakes Regulatory Landscape
As of 1 January 2026, Malaysia has officially entered a new era of digital governance, where content moderation is subject to a stricter statutory regime. The implementation of the Online Safety Act 2025 (“ONSA”), together with its stringent response timelines, marks a fundamental shift in how communications and multimedia service providers must manage their operations.
For such service providers, the cost of delayed response is measured in penalties up to eight figures, as well as personal liability for executives, among the key changes introduced under the new ONSA regime.
Who Is Under the Watch?
The ONSA is designed to capture any provider or platform with a Malaysian footprint, regardless of its jurisdiction of incorporation or the location of its principal operations:
(i) The following categories of Licensed Service Providers under the Communications and Multimedia Act 1998 (“CMA 1998”):
(ii) 8-Million User Trigger: Any platforms with 8 million or more Malaysian users are now deemed to be a registered licensee under the Applications Service Provider Class (ASP(C)) framework.
(iii) Global Reach: Section 3 of the ONSA gives the Malaysian Communications and Multimedia Commission (“MCMC”) extraterritorial reach. This ensures that major field players such as Meta, TikTok and Telegram are legally bound by Malaysian law regardless of where they are headquartered, granting the MCMC immediate regulatory oversight.
Global Reach In Action – The ONSA is a global compliance mandate for any multinational service provider with a Malaysian footprint. This borderless enforcement approach is already evident in the MCMC’s firm stance on emerging technologies. A recent example is the temporary ban imposed by the MCMC on Grok AI (owned by Elon Musk) in early January 2026, following allegations it had been misused to generate and disseminate explicit deepfakes classified as harmful content.
The MCMC made clear that any failure to comply with Malaysian laws would be addressed firmly in accordance with existing legal provisions. This reinforces the significance of section 3 of the ONSA, which establishes its extra-territorial reach and cross-border accountability.
Tiered Risk Framework – Harmful Content
ONSA moves away from voluntary moderation to a tiered risk system, providing detailed Schedule(s) that categorises harmful content into two tiers.
“Harmful Content” (First Schedule of ONSA) – Covering nine specific categories of content that impact public safety and decency, briefly:
“Priority Harmful Content” (Second Schedule of ONSA) – Covering the two highest-urgency categories of content:
The Compliance Golden Hours
The Online Safety (Period) Regulations 2025 (“Period Regulations”) now turn content moderation into a high-speed operational race. ASP and CASP platforms are now subject to stringent statutory timelines and must proactively meet these statutory stopwatches:
(i) Content must be immediately made inaccessible to all users for 24 hours pending assessment.
(ii) Once confirmed as Priority Harmful Content, it must be permanently blocked or removed within 1 hour of that determination (or reinstated within the same time, if wrongly classified).
(i) Content must be made inaccessible within 4 hours to all users for 24 hours pending assessment.
(ii) Once confirmed as Harmful Content – must be permanently blocked or removed within 12 hours of that determination (or reinstated within 4 hours from determination, if wrongly classified).
Mandatory Governance Beyond “Takedowns”
ONSA further requires platforms to adopt proactive, system-wide risk management rather than merely reactive measures such as post-by-post deletions. ASPs and CASPs (“Providers”) must now fulfil expanded duties that shape how they govern and design their services:
The Boardroom Risk: Personal Liability
This represents a critical commercial consideration for C‑suite executives and directors. Beyond corporate penalties, the ONSA extends direct accountability to key officers: directors, compliance officers, partners, managers, secretaries, or other similar officers (“Executives”).
High-Stakes Penalties & Enforcement
The penalty framework under ONSA is set at a severe level to ensure maximum corporate accountability. Prolonged failures can escalate into multi-million-ringgit liabilities due to compounding daily fines. Below are some key statutory penalties:
Legal Recourse: The Online Safety Appeal Tribunal
The ONSA establishes the Online Safety Appeal Tribunal (“OSAT”) as a critical check on the MCMC’s regulatory powers, providing a formal, quasi-judicial forum for Providers to challenge MCMC enforcement actions or decisions they consider unjust.
Decisions made by the OSAT are final and binding and are not subject to further appeal. Crucially, these decisions can be enforced in the same manner as a judgment or order of the High Court.
Looking Ahead: Anticipated Developments for 2026
Ongoing Subsidiary Legislation
The MCMC is likely to issue additional regulations in due course to address areas that remain “yet to be prescribed” under the ONSA. These are in addition to the four sets of Regulations which have, as of the date of this article, been enacted:
New Mandatory Codes of Conduct
Child Protection & Risk Reduction Codes: Following a public consultation period ending in March 2026, the MCMC is expected to finalise these codes with an aim to enforce safer algorithms and more effective complaint mechanisms for platform Providers.
Mandatory Age Verification
With child safety being the central pillar of the ONSA, the MCMC is presently evaluating technological solutions including e-KYC and AI-driven biometric age estimation. A mandatory verification mechanism is expected to be finalised by Q2 of 2026.
Under this new mandate, platform Providers will soon bear the full legal obligation to ensure children aged 16 and below are subject to stricter restrictions in relation to digital content including social media access.
Commentary
The ONSA marks a decisive shift in Malaysian digital content regulation. Whether global or regional, the question for Providers is no longer whether to comply, but how quickly and effectively they can adapt.
Challenges & Strategic Considerations
While the ONSA introduces a clear framework for online safety and platform accountability, several practical challenges are likely to arise as enforcement begins.
Practical Steps: Be ONSA-Ready
With fines reaching up to RM10 million, daily escalation penalties, and proactive enforcement already underway, compliance under the ONSA should be treated as a core operational priority. At a minimum, Providers serving Malaysian users should consider:
This article was authored by Suaran Singh Sidhu (Head), Joel Prashant (Senior Associate), Angela Leong (Associate) and Teeran Vharma (Pupil-in-Chambers).
Key Contacts
Please contact our team if you have any questions.
Suaran Sidhu | Head, Technology, Media and Telecommunications