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MALAYSIA: In a move that has sparked relief and scepticism, the Malaysian government has temporarily shelved enforcing its stricter online restriction plan.

The decision comes after a public outcry and concerns from industry experts that the measures could harm the country’s digital economy and deter foreign investment.

The government’s initiative involves rerouting requests from third-party DNS servers to those managed by Malaysian internet service providers.

In defense of the online restriction plan

In a recent announcement, the Malaysian Communications and Multimedia Commission (MCMC) refuted claims that this action is overly restrictive, emphasizing its purpose to shield susceptible individuals from accessing potentially harmful content, including online gambling, adult material, copyright violations, and fraudulent financial schemes.

MCMC explained that the DNS redirection strategy is designed to prevent access to harmful websites while ensuring that legitimate sites remain accessible without significant interruption.

The commission noted that it had blocked 24,277 websites from 2018 to Aug 1, 2024, to enhance user safety.

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Backlash then suspension

The plan was criticised for its potential to infringe on privacy, compromise data security, and stifle internet freedom.

The backlash was widespread, with opposition from everyday users, industry professionals, and even Prime Minister Anwar Ibrahim’s coalition members.

In a report published by The Straits Times, Communications Minister Fahmi Fadzil announced on Sept 8 that implementing the Domain Name System (DNS) redirection policy would be suspended.

What netizens say

One Reddit user said, “They realized they were about to lose a future election because of this issue.”

Another user added, “Yeah, it’s good that they realized it was a horrible idea to anger the people who care about privacy, government overreach, and tech in general, but IMO, they don’t have a good chance of surviving the next election either way.”

One other netizen who was also angered for not being consulted said, “Well, just the willingness to do this without asking first already lost them my vote. But what are the alternatives? I feel like we are stuck with all terrible options,” of which another user responded with:

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“Same. The fact that this was already halfway implemented means that if no one made a fuss, they’d press on with it… They’ve lost my vote a long time already, but this was the final nail in the coffin that made me go!”

Are forthcoming investments at risk?

Former Deputy International Trade and Industry Minister Ong Kian Ming expressed fears that the policy and the ensuing uncertainty could prompt large US tech companies to reconsider their investment plans in Malaysia.

This is particularly concerning as the digital economy is a cornerstone of the Anwar administration’s development strategies.

Investment, Trade and Industry Minister Tengku Zafrul Aziz highlighted the importance of the digital economy, which accounts for 70 per cent of Malaysia’s investments and is expected to contribute more than a quarter of the country’s GDP by 2025.

As the government continues to navigate the complexities of online regulation and security, the temporary suspension of the online restriction plan and DNS redirection policy are seen as cautious steps to address public concerns and protect the country’s economic interests.

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The future direction of Malaysia’s internet regulation remains a critical issue requiring careful consideration and dialogue with all stakeholders.

Featured image: Depositphotos