PETALING JAYA: As Malaysia’s digital economy becomes increasingly interconnected, regulating the communications sector has become a far more complex and resource-intensive task, requiring the Malaysian Communications and Multimedia Commission (MCMC) to expand its capabilities well beyond its original mandate.
“The government has broader national priorities to focus on, while statutory bodies like MCMC already have well-established governance frameworks governing the use of public funds,” said deputy managing director of development of MCMC, Eneng Faridah Iskandar.
“We are held to a very high standard, and rightly so, because almost everyone in Malaysia depends on communications services and people trust us to regulate the industry in the long-term interests of consumers.
“That is the objective behind every policy and decision we make.”
Eneng noted that when the Malaysian Communications and Multimedia Commission Act 1998 was enacted, social media platforms, content creators and digital businesses did not exist.
She pointed out that the proliferation of digital technologies today, however, means anyone with a smartphone can now create and publish content.
“So, the types of services offered to the public, the size of the industry and the number of players involved have all expanded significantly,” she told StarBiz.
That said, Eneng stressed that the regulatory framework must evolve in tandem with the industry.
This is as a more complex digital environment demands more sophisticated regulatory capabilities.
“There are practical limitations, which is why greater investment is necessary as MCMC develops its policies.
“Effective regulation requires robust monitoring, skilled manpower and the right technologies, all of which have become increasingly costly,” she said.
Additionally, Eneng highlighted that public expectations have simultaneously shifted.
“Take quality of service audits, for example.
“During the pandemic, when many people moved from offices to working from home, we saw a significant increase in connectivity complaints.
“Office environments typically have better connectivity because they are concentrated in urban areas, but residential areas, especially newer developments, would face different challenges.
“During that period, complaints surged into the tens of thousands every month,” she highlighted.
MCMC subsequently recalibrated its quality-of-service standards, conducted on-the-ground assessments and verified whether network performance met evolving user demands.
The process required significant resources, technology and manpower, alongside extensive stakeholder consultations and technical evaluations, driving up regulatory costs, Eneng noted.
“Beyond enforcement, amending laws itself involves significant costs, including stakeholder consultations, town halls and engagement sessions nationwide to explain regulatory changes.
“On top of operational costs, we also need to invest in technologies and systems to monitor licensees effectively.
“These are all factors that contribute to the increasing cost of regulation,” she said.
What began as a regulator for a handful of telecommunications operators and broadcasters has evolved into a multi-faceted watchdog with responsibilities spanning a wider range of industries, digital services and legislation.
“Network facilities providers alone number in the hundreds, while mobile network operators, broadband providers and digital service providers have expanded significantly.
“This has pushed the agenda to incorporate the right technologies most relevant today, not only to keep pace with the industry but also to strengthen governance and improve how we carry out our regulatory responsibilities.
“Initially, we were established to regulate under the fundamentals of the Communications and Multimedia Act, but additional responsibilities came through legislation such as the Postal Services Act, Strategic Trade Act, Digital Signature Act and more recently, the Online Safety Act,” she explained.
