Fahmi says govt to continue diplomatic approach to resolve concerns over social media ad spending

KUALA LUMPUR, Dec 14 — The federal government will use diplomacy to address the advertising expenditure (adex) concerns faced by media practitioners, the same way it did in resolving concerns over Malaysia’s 5G dual network.

Communications Minister Fahmi Fadzil acknowledged the revenue concern raised by local media companies as advertisers shift their spending to social media platforms.

But he believes a diplomatic approach is better at resolving the reservations media companies have, pointing to his past experience when dealing with the country’s top five mobile network operators who each agreed to take a 14 per cent stake in Digital Nasional Berhad, resolving months of back-and-forth telecommunications talks that nearly thwarted the RM16 billion 5G enterprise earlier this month.

“From here I think that we need to have some balancing so there are at least some returns for media companies.

“This is still under discussion but I believe all parties could be brought to the negotiation table so a more conducive environment could be fostered.

“I think we can utilise the same process for the implementation of Malaysia's 5G dual network to also resolve the ongoing adex issue faced by media companies,” he told reporters at the EU-AIBD Seminar on Transcending Disinformation: Towards Responsible Media Consumption at Hilton KL here.

In July, Fahmi was reported as saying his ministry plans to draft a Bill related to the return of adex for the survival of local media organisations.

He said the government also intends to hold a meeting with tech giants like Google, Meta and TikTok to discuss the matter.

He said the government is ready to assist local media companies to negotiate compensation from the tech giants, whether directly or indirectly.

Separately, Fahmi reiterated the unity government's commitment to set up a Malaysian Media Council (MMC) by tabling a Bill next year.

The proposed MMC aims to seat the print, electronic and online media together to promote responsible journalism while protecting the rights of the news outlets and media freedom.