TikTok, Meta Face Malaysian Probe Into Drug and Scam Ads
Local regulators demand answers as platform accountability tightens across Southeast Asia.
Malaysia's communications regulator has summoned TikTok and Meta to explain how their platforms are being exploited for illegal activities.
The Malaysian Communications and Multimedia Commission (MCMC) announced the investigations on November 7 and 8, citing reports of drug-smuggling recruitment and scam advertisements that endanger users.
MCMC's investigation into TikTok follows reports that the platform was used to recruit individuals for drug smuggling through false job advertisements. The commission has demanded details on TikTok's content monitoring systems and enforcement processes under Section 233 of the Communications and Multimedia Act 1998, which criminalizes digital platform misuse.
The probe tests TikTok's ability to detect and prevent criminal content on its platform. In response to mounting regulatory pressure across Southeast Asia, TikTok implemented seven new compliance policies in the region this year, including artificial intelligence content labeling and youth advertising restrictions.
The company also rejected 1.4 million TikTok Shop seller applications in the first half of 2025 to combat fraud.
Leighton Cosseboom
MCMC's investigation into Meta centers on a Reuters report alleging the company earned approximately US$16 billion, or 10% of its 2024 revenue, from ads linked to scams and illegal activities. The report claims Meta's platforms host about 15 billion scam-related ads daily.
Between August 1 and November 4, 2025, MCMC submitted 157,208 takedown requests to Meta for removing ads related to illegal activities. Of these, 44,922 specifically targeted scam advertisements. The volume represents the highest number of takedown requests issued to any platform in Malaysia.
Communications Minister Fahmi Fadzil stated that MCMC spent 22 years of man-hours flagging scam ads on Meta's platforms, suggesting the company should bear some enforcement costs. MCMC has asked Meta to verify the Reuters claims and is conducting further investigations.
The investigations reflect Malaysia's increasingly aggressive stance on platform regulation. MCMC recently secured an Erinfjord Injunction against Telegram, obtaining a court order to close two channels spreading harmful content. The commission has warned of potential statutory changes if platforms fail to demonstrate effective systems for preventing illegal activities.
This kind of regulatory pressure is reshaping the Southeast Asian digital advertising game.
Approximately 35% of regional advertisers shifted budgets from TikTok to Instagram Reels in 2025 due to regulatory uncertainty. Meta's decision to discontinue fact-checking this year, replacing it with a community notes system, has increased brand safety concerns for advertisers whose ads may appear alongside misinformation.
MCMC has reminded the public to exercise caution with online job offers and ads as investigations continue.
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