PETALING JAYA, Sept 6 — Of the estimated RM4.5 billion in total advertising expenditure in Malaysia, social media platforms have captured RM2.5 billion, significantly cutting into the revenue of traditional news media companies.

As these companies face increasing challenges in sustaining quality journalism, Communications Minister Fahmi Fadzil said that Putrajaya will not intervene but will instead allow engagement sessions between media and social media platforms to facilitate a commercial agreement.

“Approximately RM2.5 billion out of the RM4.5 billion has gone directly to social media, bypassing media organisations,” Fahmi told reporters today.

“This has led to many experienced and long-serving journalists being laid off, which is deeply concerning.”

Despite these concerns, Fahmi clarified that the government does not plan to follow the example of other countries by imposing regulations, urging media companies to find common ground with social media platforms instead.

“We will allow that process of engagement to take place,” he said.

Addressing the broader issue, Fahmi acknowledged that the struggle to sustain journalism is not unique to Malaysia, with other nations also facing varying levels of success.

However, he stressed that the government is committed to protecting the quality of Malaysian journalism.

“This administration will not allow such cannibalisation to affect the quality of our journalism,” Fahmi said during his speech at the Asia News Network Summit.

He emphasised that a space must remain for the press to conduct on-the-ground investigations and hold power to account.

https://www.malaymail.com/news/malaysia/2024/09/06/fahmi-rm25b-advertisement-revenue-loss-to-social-media-leaves-media-in-crisis-govt-opts-not-to-intervene/149469