KUALA LUMPUR – The proposed amendments to the Communications and Multimedia Act (CMA) 1998 will grant the Malaysian Communications and Multimedia Commission (MCMC) the authority to audit licensees and other entities involved in communications services.
The Communications and Multimedia (Amendment) Bill 2024, tabled for its first reading in Parliament yesterday by Communications Minister Fahmi Fadzil, introduces Clause 20, which proposes a new section under Chapter 5 on Information-gathering Powers.
According to Clause 20, the proposed Section 73A will enable the MCMC to authorise its officers, agents, or technical advisers to conduct audits on “any licensee or any other person providing services related to communications systems.”
The section outlines that during an audit, the commission may access the premises of the targeted entity, retrieve pertinent information, and secure access to such data, whether stored electronically or otherwise.
Notably, Section 73A(4) proposes that the commission may impose the cost of conducting an audit on the entity being audited, “as it deems necessary.” Refusal to cooperate or to facilitate the audit would constitute an offence under the proposed law.
The Bill also introduces Section 73B, which would empower the commission to require licensees to appoint independent experts—at the licensees’ own expense—to conduct audits on specific matters. The findings of these audits must be submitted to the MCMC within a prescribed timeframe, with non-compliance being deemed an offence.
Under the CMA, licensable activities are categorised into network facilities providers, network services providers, application services providers, and content applications service providers. The latter group encompasses traditional broadcasting as well as online publishing and information services.
The proposed amendments are part of the government’s broader initiative to strengthen the regulatory framework and ensure compliance with industry standards. Fahmi has emphasised the importance of equipping the MCMC with the necessary tools to enforce the CMA effectively while addressing gaps in the existing legislation.
Expanded enforcement powers
Clause 106 of the Bill proposes amendments to Section 248, granting authorised officers the power to enter premises without a warrant in specified circumstances. Currently, this power is reserved for police officers of inspector rank or higher.
Meanwhile, Clause 109 seeks to replace Section 250 with a more detailed provision concerning items seized during enforcement operations. It stipulates that written notices of seizure need not be served if the seizure occurs in the presence of the person or their agent. For unoccupied premises, the written notice may be posted conspicuously.
Under Clause 111, the public prosecutor may authorise an officer or police officer ranked superintendent or above to install devices for intercepting, retaining, and removing specified communication devices if deemed relevant to an ongoing investigation.
Clause 112 introduces requirements for individuals to preserve communication data deemed necessary for investigations. Such individuals are prohibited from disclosing the notice’s content, method, or related details without lawful authority. Failure to comply will constitute an offence.
Penalties for obstruction and non-compliance
Clause 114 proposes additional offences under Section 253, targeting individuals who obstruct searches or investigations. The offences include refusing to provide information related to suspected offences, attempting to rescue seized items, or destroying evidence to prevent its seizure.
Offenders may face fines of up to RM1 million, imprisonment of up to 10 years, or both, under the amended provisions.
The proposed amendments reflect a comprehensive approach to strengthening the MCMC’s regulatory and enforcement powers in the communications sector. – December 3, 2024.