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In November 1998, two laws were enacted to give effect to a new regulatory model: the Communications and Multimedia Act 1998, which set out a new regulatory licensing framework for the industry and the Malaysian Communications and Multimedia Act 1998 which created a new regulatory body, the Malaysian Communications and Multimedia Commission (MCMC) (Suruhanjaya Komunikasi Dan Multimedia Malaysia (SKMM)).
The MCMC set forth 10 national policy objectives to:
- Establish Malaysia as a major global centre and hub for communications and multimedia information and content services
- Promote a civil society where information-based services will provide the basis of continuing enhancements to quality of work and life
- Grow and nurture local information resources and cultural representation that facilitate the national identity and global diversity;
- Regulate for the long-term benefit of the end user;
- Promote a high level of consumer confidence in service delivery from the industry;
- Ensure an equitable provision of affordable services over ubiquitous national infrastructure;
- Create a robust applications environment for end users;
- Facilitate the efficient allocation of resources such as skilled labor, capital, knowledge and national assets;
- Promote the development of capabilities and skills within Malaysia's convergence industries; and
- Ensure information security and network reliability and integrity.
The 10 national policy objectives are the regulatory basis of MCMC's regulatory framework which include, economic regulation, technical regulation, consumer protection and social regulation. On November 1, 2001, MCMC took over the regulatory functions of the Postal Services Act 1991 and the Digital Signature Act 1997.