By Shaun Lim
Facing myriad challenges that are fundamentally reshaping the media landscape, Malaysia's broadcast and media industry is at a crossroads. The biggest and most significant challenge, however, is the collapse of the traditional advertising business model, argued Dr Ahmad Zaki, an independent media observer.
He told APB+, “Digital platforms now capture nearly 75% of total advertising expenditure in Malaysia, leaving traditional broadcasters and media companies in structural decline.
“Legacy operations, including broadcast towers, printing plants, distribution networks, are burdened by costly physical infrastructure, while advertisers increasingly favour digital-first platforms that offer precise and targeted audience data.”
It does not help matters when the exact audience these advertisers seek are increasingly migrating to social media platforms and algorithm-driven content, where news — credible or otherwise — travels at speeds which regulated broadcasters fail to match.
Against this backdrop, the Malaysian government launched the Media Innovation Fund (MIF), or Dana Inovasi Media, earlier this year. With an initial allocation of RM30 million (US$7.3 million), the fund provides grants of up to RM300,000 (US$73,430) per application across four key areas: training; software and technology development; purchase of equipment and infrastructure; and research and development in creative content development and production.
As of June 2026, more than 70 media companies have received a total of RM24.57 million in funding across multiple phases.
Malaysia’s Communications Minister, Datuk Fahmi Fadzil, has been clear about the fund's intent. As legacy media outlets adopt digital technologies including AI, the fund is designed to support journalists and production staff, not replace them. Eligible applicants must be media companies registered with the Information Department and holding valid Media Accreditation Cards, ensuring that limited funds reach established media organisations rather than unaffiliated entities.
Dr Zaki, who is also the former Director of Technical Operations at Malaysian media company Media Prima, said, “The MIF is an important step taken by the government to improve the quality of the creative industry and assist in the development of journalism in Malaysia.
“It is hoped that the financial support in the field of human resource will produce better quality journalists and technical resources within the creative industry in Malaysia.”
In conjunction with the MIF, the Ministry of Communication (Kementerian Komunikasi) and Malaysian Communications and Multimedia Commission (MCMC) are also developing the National Broadcasting Policy (NPC), which aims to provide a more sustainable roadmap for the development of the broadcast and creative industry in Malaysia.
While encouraged by these initiatives, Dr Zaki sounds a note of caution. "The MIF is a good start to an already frail media industry. However, it should not be seen as a solution to the issues currently experienced by broadcasters and the creative industry."
His measured assessment is grounded in the scale of the structural challenges the fund is being asked to address. Malaysia's media companies are not simply dealing with a technology gap. As digital platforms proliferate, they are contending with a fundamental collapse of the advertising model that sustained them for decades.
At the same time, many legacy organisations are struggling with internal resistance to digital transformation, even as the use of AI and applied business analytics continues to rise. Newsrooms built over decades for print or broadcast production remain culturally oriented towards established workflows, making adaptation difficult.
“There is often a gap in digital skills, insufficient investment in upskilling journalists, and confusion over what digital transformation actually entails,” Dr Zaki noted.
The regulatory environment compounds the challenge further. Licensed terrestrial broadcasters are bound by Content Application Service Provider (CASP) licence conditions, which impose compliance costs and content obligations. “On the other hand, over-the-top (OTT) and streaming services are not regulated and therefore are free to disseminate sensationalised news and content which attracts larger audience groups.”
Unsurprisingly, advertisers are choosing streaming platforms over traditional media platforms to place their ads. While this is compelling broadcasters to rebuild their strategies around brand strength, direct audience relationships, and high-value, differentiated content that AI cannot easily replicate, the fragmentation of audience behaviour is hard to ignore.
Driven by what Dr Zaki calls an “influencer revolution”, news consumption has become more personalised and algorithm-driven in favour of social media platforms over traditional media.
The speed of news delivery adds yet another layer of pressure. “In the pursuit of being a trusted source, many broadcasters have increased internal bureaucracy which essentially slows down news delivery,” Dr Zaki explained. “The compromise between reliability and speed is an issue. Most of the time, viewers are willing to accept untrustworthy sources in return for sensationalised news.”
While it is hoped that the MIF’s four focus areas will provide sound foundations to rejuvenate Malaysia’s broadcast and media industry, financial support alone will not be sufficient to level a playing field that is structurally tilted.
“Currently, digital platforms are not regulated when the licensed broadcasters are heavily regulated. This apparently disproportionate treatment has indirectly punished the traditional broadcaster who has to incur much higher compliance costs as opposed to the less regulated streaming platforms,” said Dr Zaki.
The MIF is a meaningful signal of government intent, and its early disbursements suggest genuine momentum. But for Malaysia's broadcasters to compete credibly in an environment where digital platforms operate with far fewer constraints, funding will need to be accompanied by regulatory reform, and a willingness to ask harder questions about what kind of media industry Malaysia wants to sustain.
