Introduction To Telecommunications Business in Malaysia

In the 1830s, the telegraph became the first mechanical communications technology, which was hailed as a huge triumph at the time. After a few hundred years, we now have cutting-edge technology that reduces the time it takes to transmit data from hours to mere seconds. Today, communication is inevitable in our daily lives and it cannot exist without these telecommunication services. Many entrepreneurs grabbed this business opportunity by taking advantage of the industry and its demand which helped them gain a big leap to become tycoons. If you want to take advantage of the expanding need for data, you should start to consider your own telecommunications business in Malaysia. 

Malaysia’s telecommunications sector has grown rapidly over the years, and it has advanced in many areas of technology. The industry’s development in Malaysia was boosted by a combination of stable regulations and market liberalisation. Investments may be made anywhere there is a demand for products or services. A new generation of technology is set to improve Malaysians’ lives through lower latency and increased connection for billions of devices, thanks to the increasing 4G coverage and emerging 5G network. 

What Does a Telecommunication Business Cover? 

Telecommunication is a wide sector that consists of information transmission, in the form of words, audio, or video throughout the world. Long-distance communication may now be accomplished in a matter of seconds, thanks to the advancements in telecommunications infrastructure. This technology allows us to improve communication, boost the economy, strengthen security, and revolutionize businesses throughout the world, benefiting people in countless ways. 

How to Set Up Your Own Telecoms Business 

In Malaysia, setting up a telecommunications business is very much like setting up any other businesses. Firstly, you should check for an untrademarked name, then you need to register with your company as well as obtain the necessary licenses for your business. The Malaysian Communications and Multimedia Commission (MCMC) governs the licensing process in Malaysia. With that being said, your applied permits fall under the following laws: 

  • The Postal Services Act 2012; 
  • The Digital Signature Act 1997; and  
  • The Communications and Multimedia Act 1998. 

Make sure your company complies with the requirements set out by the Malaysian government by carefully reading the terms and circumstances of these rules. 

Under the Communications and Multimedia Act of 1998, there are four types of activity that must be licensed: 

  • Network Facilities Provider 
    These providers are responsible for creating the convergence models that support the delivery of network, application, and content services. 
  • Network Services Provider 
    These providers provide the fundamental bandwidth and connection required to support a variety of applications. Besides, they are also in charge of tying together various networks. 
  • Application Services Provider 
    These are the providers that offer services like voice, data, or content-based services, as the name implies. The functions and capabilities are made available to end users through the usage of everyday apps. 
  • Content Applications Services Provider 
    There are providers that offer services like traditional broadcasting, information, online publication, etc. 

To find out more about the license types and relevant procedures regarding how to set up a telecommunications business in Malaysia, please visit the following link: https://www.mcmc.gov.my/en/sectors/telco/licensing-guide

Prepare Yourself Before Venturing into The Industry 

Starting a telecoms business in Malaysia is a great idea since it is a growing industry with lots of competition and lots of opportunity for those who are ready to wait their turn. Like any other business, the telecommunications sector has its advantages and disadvantages. Be aware that this industry also carries risky dangers, and be prepared to handle them whenever they emerge. To reduce risk and maximise profit, conduct thorough research on the telecommunications market so that you may make reasonable and measured judgments. 


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