10:05 AM EDT, 08/26/2024 (MT Newswires) -- (Updates with Grab's response in the eighth paragraph.)

The Asia Internet Coalition has asked the Malaysian prime minister in a letter Friday to halt the government's plan that will require social media and private messaging platforms to apply for a license in the country.

The coalition's members include Meta Platforms ( META ) , Apple ( AAPL ) , Alphabet (GOOG, GOOGL), Amazon.com ( AMZN ) , Booking Holdings ( BKNG ) Booking.com unit, Snap (SNAP), Pinterest ( PINS ) , FedEx ( FDX ) , Spotify Technology ( SPOT ) , Shopify ( SHOP ) , Grab Holdings ( GRAB ) , LinkedIn, X, Line Corp., Rakuten, Yahoo, and Zalora.

The coalition believes that the licensing framework is "unworkable" for the sector and will affect innovation by putting "undue burdens" on companies, AIC Managing Director Jeff Paine wrote in the letter.

Paine also said that the Malaysian government's proposed legislation is without a proper "roadmap" and will impact current investment and future prospects because of the "complexity and cost of compliance."

"This will have profound effects on established players, emerging startups, small businesses, and the broader digital economy," the AIC said in the letter.

Additionally, the letter said the coalition is concerned about the impacts of this proposed plan on the Malaysian digital economy.

"While we understand the government's commitment to addressing issues such as online harms against minors, scams, online gambling, and hate speech, we want to emphasize that AIC members share these concerns and are dedicated to collaborating on solutions that protect users while also fostering innovation."

A Grab spokesperson told MT Newswires in an email that the company will not comment on the matter as the "proposed regulation does not impact" the firm's operations, while the remaining members and the Malaysian Communications and Multimedia Commission did not respond to requests for comment.

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