A new report by Reuters has raised serious concerns about Meta's advertising ecosystem, and Malaysia wants answers. Communications Minister Fahmi Fadzil has described the findings as "very worrying" and "explosive," prompting the government to initiate a formal inquiry into the social media giant's alleged profits from unlawful advertisements.

The allegations suggest that Meta—owner of Facebook, Instagram, Threads, and WhatsApp—may have been earning a significant portion of its revenue from scam-related and illegal content. And for Malaysia, which has been battling online fraud, fake investment schemes, and illegal gambling promotions for years, the report hit a particularly sensitive nerve.

A Troubling Report That Sparked the Alarm

The Reuters investigation cited internal Meta documents claiming the company projected roughly 10 percent of its 2024 earnings—about US$16 billion—to come from advertisements linked to scams or prohibited items.

One document from December 2024 reportedly estimated that Meta served around 15 billion "high-risk" scam ads daily, generating close to US$7 billion annually from that segment alone. If true, these numbers paint a disturbing picture: harmful ads are not just slipping through cracks—they may be a major revenue stream.

Fahmi made it clear during a press conference after the Cabinet meeting that Meta must respond decisively, not defensively.

"The report is detailed and backed by internal documents," he said. "If these figures are accurate, they show Meta's earnings include revenue from illegal activity, including content that violates Malaysian law."

Malaysia's Frustration: Years of Cleanup, Zero Compensation

Fahmi also highlighted an often-overlooked issue: the enormous manpower Malaysian authorities have invested in helping Meta police its own platforms.

According to the Malaysian Communications and Multimedia Commission (MCMC), between 1 January and 15 October this year, the total time spent reporting harmful content to Meta and requesting removals amounted to 22.2 years of work. Not hours. Not weeks. Years.

Each removal request takes 30 to 45 minutes—and Malaysia handles thousands.

"We should send Meta the bill for all the work we're doing on their behalf," Fahmi said, half-jokingly but with clear frustration.

The Money Trail: What Meta Earns From Malaysia

Fahmi also referred to local figures to show why Malaysia is taking the matter seriously. Meta reportedly earned RM2.5 billion in advertising revenue from Malaysia in 2023. Based on Reuters' projections, roughly RM250 million of this could be tied to scam or gambling-related ads.

Meta has denied the Reuters numbers, claiming the figures were either misinterpreted or taken out of context. But Fahmi wasn't convinced.

"The response was not satisfactory," he said. "This is a shocking report, and we will look into it thoroughly. It forms the basis for us to call Meta in to provide a full explanation."

Stronger Enforcement Coming: The Online Safety Act (ONSA)

Fahmi also used the moment to underline the importance of the upcoming Online Safety Act (ONSA). Once in effect, social media companies will have a legal responsibility to ensure harmful content is not accessible to Malaysian users.

"If they fail to do so, action can be taken," he warned.

This means platforms like Meta will no longer be able to rely on voluntary cooperation or opaque internal processes. Compliance will be enforceable—and costly if ignored.

What Comes Next?

Malaysia's next move is clear: Meta will be summoned for an official explanation. The government wants transparency, accountability, and an assurance that illegal ads are not being monetised at the expense of the public.

For Meta, this inquiry adds to growing scrutiny worldwide over its role in hosting harmful content. For Malaysian users, it highlights how seriously the government is now treating online safety and fraudulent digital advertising.

One thing is certain—this conversation is far from over.