326
Malaysia
with high-speed fi ber optic wires.
20 Affi liated projects include training an IT-literate
Malaysian workforce through specialized school programs and providing consumers
with fi nancial incentives to purchase personal computers. As of 2009, Malaysia had
more than 15 million Internet users, with a national penetration rate of 55.90 percent.
21
After Singapore and Brunei, Malaysia has the third-highest national penetration rate
in Southeast Asia.
22
Recently, the Malaysian government announced its aim to achieve household broadband penetration rates of 50 percent by the end of 2010 under its National Broadband
Initiative program.
23 However, as of 2009, the fi xed broadband penetration rate in
Malaysia stood at a mere 6.08 percent, second in the region to Singapore ’ s 23.7 percent.
24
In spite of the relatively slow uptake of broadband among Malaysians, the government
has recently granted Worldwide Interoperability for Microwave Access (WiMAX) licenses
to local network providers in a bid to improve overall connectivity to the Internet.
25
The state maintains control over physical access to the Internet, requiring all Internet service providers (ISPs) to be licensed for operation. TMNet, a wholly owned
subsidiary of a privatized branch of the state, dominates the ISP market with its 93
percent share.
26 By granting WiMAX licenses to four smaller, privately owned, and
nonestablished ISP companies, the Malaysian government appeared to be reversing
its trend of direct control over access to the Internet.
27 However, it would be premature
to draw this conclusion. First, because WiMAX integrates telecommunication services
onto a single platform with the result that a single state licensee provides fi xed-line
and mobile-phone coverage, television streaming, and broadband access, it is at least
arguable that the need for direct state control through corporate stakeholding has
been reduced. Second, YTL Communications, one of the four “ independent ” WiMAX
licensees, is currently embroiled in controversy over an allegedly unfair governmental
approval that enables it to operate in the “ highly coveted 700MHz spectrum. ”
28
Legal and Regulatory Framework
Although the Malaysian federal constitution guarantees the right to free speech, this
freedom is immediately qualifi ed.
29 Parliament is constitutionally permitted to restrict
the right as it deems “ necessary or expedient ” for reasons of public order and national
security.
30 As mentioned, this right is formally reinforced, where online content is
concerned, in the 1998 pledge. However, the 2008 election results have provided an
impetus for stricter scrutiny, which was made evident by the government ’ s brief but
thorough attempt in 2009 to implement a national-level fi lter on the Internet. The
Malaysian government reportedly issued tenders to software companies for an Internet
fi lter,
31 citing the need to “ keep out pornographic materials and bloggers who infl ame
racial sentiments. ”
32 This blatant repudiation of its 1998 pledge drew many domestic
Malaysia
with high-speed fi ber optic wires.
20 Affi liated projects include training an IT-literate
Malaysian workforce through specialized school programs and providing consumers
with fi nancial incentives to purchase personal computers. As of 2009, Malaysia had
more than 15 million Internet users, with a national penetration rate of 55.90 percent.
21
After Singapore and Brunei, Malaysia has the third-highest national penetration rate
in Southeast Asia.
22
Recently, the Malaysian government announced its aim to achieve household broadband penetration rates of 50 percent by the end of 2010 under its National Broadband
Initiative program.
23 However, as of 2009, the fi xed broadband penetration rate in
Malaysia stood at a mere 6.08 percent, second in the region to Singapore ’ s 23.7 percent.
24
In spite of the relatively slow uptake of broadband among Malaysians, the government
has recently granted Worldwide Interoperability for Microwave Access (WiMAX) licenses
to local network providers in a bid to improve overall connectivity to the Internet.
25
The state maintains control over physical access to the Internet, requiring all Internet service providers (ISPs) to be licensed for operation. TMNet, a wholly owned
subsidiary of a privatized branch of the state, dominates the ISP market with its 93
percent share.
26 By granting WiMAX licenses to four smaller, privately owned, and
nonestablished ISP companies, the Malaysian government appeared to be reversing
its trend of direct control over access to the Internet.
27 However, it would be premature
to draw this conclusion. First, because WiMAX integrates telecommunication services
onto a single platform with the result that a single state licensee provides fi xed-line
and mobile-phone coverage, television streaming, and broadband access, it is at least
arguable that the need for direct state control through corporate stakeholding has
been reduced. Second, YTL Communications, one of the four “ independent ” WiMAX
licensees, is currently embroiled in controversy over an allegedly unfair governmental
approval that enables it to operate in the “ highly coveted 700MHz spectrum. ”
28
Legal and Regulatory Framework
Although the Malaysian federal constitution guarantees the right to free speech, this
freedom is immediately qualifi ed.
29 Parliament is constitutionally permitted to restrict
the right as it deems “ necessary or expedient ” for reasons of public order and national
security.
30 As mentioned, this right is formally reinforced, where online content is
concerned, in the 1998 pledge. However, the 2008 election results have provided an
impetus for stricter scrutiny, which was made evident by the government ’ s brief but
thorough attempt in 2009 to implement a national-level fi lter on the Internet. The
Malaysian government reportedly issued tenders to software companies for an Internet
fi lter,
31 citing the need to “ keep out pornographic materials and bloggers who infl ame
racial sentiments. ”
32 This blatant repudiation of its 1998 pledge drew many domestic