Malaysia said in July it would require social media platforms and messaging services with more than eight million users to obtain a license, as part of efforts to combat financial scams, cyberbullying and online sex crimes.

Companies could face legal action if they fail to do so by January 1, 2025.

The plan faced backlash, with an Asian industry group including Meta urging the government in August to shelve the initiative. Malaysia, however, said it would not delay the proposed regulations, with Communications Minister Fahmi Fadzil saying tech companies must comply with local laws to continue operating in the country.

Rafael Frankel, Meta’s director of public policy for Southeast Asia, said the company had not yet decided whether it planned to apply for the license before the January deadline, due to a lack of clarity on the new regulations.

The deadline for applying for a license has been “exceptionally accelerated” and social media companies’ obligations under the plan remain unclear, Frankel said in an interview with Reuters.

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“These regulations tend to take a few years to go through multiple iterations…to structure them properly and balance the need for security and ensure that you’re not inadvertently capping innovation and digital economic growth,” he declared.

Malaysia’s communications ministry did not immediately respond to a request for comment on the interview.

In a Facebook post on Wednesday following a meeting with Meta representatives the day before, Communications Minister Fahmi thanked the company for its willingness to cooperate with the government, but urged it to take steps more proactive measures against sexual content involving minors on its platforms.

Frankel said Meta shared the Malaysian government’s goal of a safe online environment and worked closely with the communications regulator to remove or restrict harmful content from its platforms.

“We don’t need a licensing regime to take online security seriously. We already take it seriously,” he said.

Meta has expressed its concerns to the government and hopes to “bridge the differences” regarding the proposed regulations before they are implemented, Frankel added, without providing details.

Malaysian authorities consider online gambling, scams, child pornography, cyberbullying and content related to race, religion and royalty to be harmful.

Malaysia reported a sharp rise in harmful content on social media earlier this year and urged social media companies, including Facebook parent Meta and short video platform TikTok, to step up monitoring of their platforms.