KUALA LUMPUR: Efforts will be made to help the local media industry weather the storm of losing advertising revenue to social media giants, says Fahmi Fadzil.
The Communications Minister acknowledged that companies are increasingly using social media platforms to advertise, resulting in an estimated RM2.5bil combined loss of revenue to media outlets.
"The effect is worrying.
"My commitment to my media friends is that we will make an effort on several matters to assist them through these changes.
"This is because we will never go back to the good old days," he said at the Minister's Conversation 2024 held at the National Institute of Public Administration (Intan) here on Friday (Sept 13).
However, the minister said the government would not intervene directly but would allow local media and social media platform providers to engage and find common ground for a suitable commercial agreement.
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Previously, he said large companies, particularly those dealing in fast-moving consumer goods, would advertise their products in newspapers, or on billboards, radio and television.
"These companies have stopped advertising with the local media and go directly to social media platforms," he added.
On Sept 6, Fahmi was reported to have said that an estimated RM2.5bil had been captured by social media platforms out of the estimated RM4.5bil in annual advertising expenditure nationwide.
He said this had impacted the local media industry, resulting in experienced journalists being laid off.
