WeChat, TikTok securing licenses in Malaysia seen as sign of growing capabilities, influence

License: Apps' penetration in Southeast Asia highlighted

WeChat's and TikTok's success in securing new social media licenses in Malaysia not only highlights Chinese technology giants' capabilities in meeting stringent compliance standards in overseas markets, but also reflects their growing influence across Southeast Asia, industry experts said on Monday.

They made the comments after the Malaysian Communications and Multimedia Commission, the country's communications regulator, said late last week that it had granted permission to WeChat, owned by Chinese tech company Tencent Holdings, and TikTok, owned by Chinese internet company ByteDance, to operate in the country under a new social media law.

The law, which is mainly aimed at addressing rising cybercrime, requires social media platforms with over 8 million users to have obtained a license to operate in the country by Jan 1. The commission did not clarify what the punishment would be if the new rule was not obeyed.

Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, said: "The success of WeChat and TikTok reflects the proactive attitude and practical efforts of Chinese tech companies in compliance in international markets. Both WeChat and TikTok have established necessary capabilities and frameworks to protect user data, manage harmful content and cooperate with government regulatory bodies."

"Such efforts provide a legal assurance for their long-term and stable operations in Malaysia, as they are poised to further boost their business scope and market share in the international market," he said.

United States tech giant Google, which operates the video platform YouTube, and major social media platform X, which was formerly known as Twitter, have yet to apply for licenses. YouTube raised concerns about its video sharing features classification under the new law, while X said its local user base did not reach the 8-million threshold, the regulator said.

Meta Platforms, which owns Facebook, Instagram and WhatsApp, is taking part in the licensing process, while messaging platform Telegram is in the final stages of obtaining its license.

Wang said: "This indicates the cautious stance of international tech giants when addressing regulatory requirements in various countries. They are prudent in changing their general approach while operating in an overseas market."

It also reflected the growing supervision from governments globally in overseeing tech giants, which brings both opportunities and challenges, Wang added.

According to market research company Statista, the number of TikTok users in Malaysia was estimated to reach around 17 million in 2023, while market consultancy Oberlo said that WeChat had around 12 million users in Malaysia in 2024, highlighting the app's significant penetration in Southeast Asia.

Pan Helin, a member of the Expert Committee for Information and Communication Economy, which is part of the Ministry of Industry and Information Technology, said that the expansion of Chinese tech companies in Southeast Asia has positively affected local economies and digital ecosystems with convenient payment systems, diverse digital content and innovative business models.

"Such advanced technologies and solutions have spurred innovation and improved the digital ecosystem in the international market, which brings convenience and contributes positively to local socioeconomic development," he added.