Malaysia is considering possible legal action against Facebook as frustration grows over the spread of online scams and illegal gambling content across social media platforms.
Communications Minister Fahmi Fadzil said the government believes the platform has not cooperated sufficiently with local authorities in efforts to tackle harmful online activity. Speaking during the Inter-Agency Retreat on Combatting Online Scam, Fahmi suggested Facebook had effectively been given a “final opportunity” to show it is willing to work more closely with regulators before stronger measures are considered.
He said any decision regarding legal action would ultimately be handled by the Malaysian Communications and Multimedia Commission (MCMC).
Over 200K takedown requests
Authorities revealed that between 1 January 2026 and 23 May 2026, Malaysian regulators submitted 271,472 takedown requests across digital platforms. According to Fahmi, around 91 per cent of those requests were linked either to online scams or illegal gambling operations.
Facebook accounted for the largest share of flagged content. Authorities said 81 per cent of illegal gambling-related material identified by regulators was found on Facebook, while 58 per cent of scam-related content was also traced back to the platform.
The figures have intensified concerns inside the government that existing moderation systems are failing to respond quickly enough to local enforcement requests. Officials argue the issue now extends far beyond ordinary content moderation and has become a serious economic and social problem.
Fahmi said Malaysians lost approximately RM2.7 billion ($640 million) to scams last year alone. The losses included investment fraud, phishing attacks, fake online sales, impersonation scams and gambling-linked schemes.
New committee to be formed
At the same time, Bank Negara Malaysia reportedly blocked scam-related transactions worth RM1.2 billion ($285 million), underlining the growing role financial institutions are playing in fighting cyber-enabled fraud. The government is now considering the creation of a new anti-scam coordination committee involving regulators, banks, telecommunications firms, enforcement agencies and online safety experts.
Officials hope a centralised structure could improve intelligence sharing and reduce delays between agencies during investigations and enforcement actions.
Fahmi said the proposal is expected to be submitted to Malaysia’s Cabinet within the coming weeks, adding that the government wants the committee established as quickly as possible. Beyond financial losses, the minister also highlighted the emotional and psychological impact scams can have on victims.
He argued that many people lose life savings, businesses and long-term financial stability after falling victim to organised online fraud networks. Malaysia’s latest warning to Facebook comes only months after reports emerged that authorities had raided a Meta-linked office in the country and issued regulatory warnings to the company.
Officials say enforcement activity has already intensified across major social media platforms. Last year, around 160,000 posts were reportedly removed from Facebook, TikTok and YouTube for violating Malaysia’s online safety standards, with Facebook alone accounting for roughly 57 per cent of the total removals.
During the same event, MCMC also signed a memorandum of understanding with the Global Anti-Scam Alliance (GASA) to strengthen international cooperation against digital fraud and scam networks.
The agreement will focus on intelligence sharing, training programmes, public awareness campaigns and cross-border enforcement cooperation as Malaysia steps up pressure on global technology platforms.
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