By N.Kuvineshwaren and Nor Azeera Adam
KUALA LUMPUR, Oct 29 (Bernama) -- Embedded SIM cards (eSIMs) for travel, or travel eSIMs, are becoming an increasingly popular choice for travellers and users in Malaysia because they can be activated digitally on compatible devices, without needing a physical SIM card.
However, behind this convenience and flexibility, using international roaming connectivity services also raises questions about the effectiveness of existing regulatory frameworks, especially in terms of consumer protection, security, and service provider accountability.
This has prompted the Malaysian Communications and Multimedia Commission (MCMC) to launch a public consultation to explore the use and provision of international roaming-based connectivity services, including foreign eSIMs and permanent roaming in Malaysia.
The consultation paper, titled “Public Consultation on the Use and Provisioning of International Roaming-Based Connectivity Services in Malaysia, Including Through eSIM Solutions”, is open for feedback until October 30.
According to MCMC, the initiative aims to identify the entities and types of services available in the domestic market and assess the need for regulatory intervention in terms of policy, operations and consumer protection.
This initiative comes in response to the growing popularity of travel eSIMs among travellers and local users due to the convenience of digital activation on compatible devices without inserting a physical SIM card. Some devices can also store multiple connectivity profiles, making it easier for travellers to switch between networks.
Beyond the consumer market, cross-border connectivity services are increasingly being used in the Internet of Things (IoT), machine-to-machine (M2M) communications, connected vehicles and enterprise solutions.
However, the growing use of these services has raised concerns over customer registration, identity verification, cyber fraud, regulatory accountability and public safety.
Among the key issues outlined in the consultation paper is whether international roaming services should be subject to a usage limit of 30 or 60 days in Malaysia. MCMC is seeking stakeholder views on both options, taking into account the needs of individual users as well as IoT and M2M applications.
The commission is also seeking feedback on whether licensing requirements should apply to parties providing telecommunications services in Malaysia using foreign-issued International Mobile Subscriber Identity (IMSI) credentials and permanent roaming arrangements. These parties may include distributors, resellers and service aggregators.
Services offered by entities operating outside Malaysia's jurisdiction can present challenges involving consumer protection, complaint resolution, pricing transparency and service quality. They also raise questions about whether foreign providers should face regulatory obligations comparable to those imposed on local operators.
Other considerations include compliance with the Personal Data Protection Act 2010 (PDPA), lawful access requirements and the use of electronic Know Your Customer (e-KYC) procedures for identity verification.
The proposed regulatory review has received support from local cybersecurity experts, who view it as an important step towards addressing potential gaps that could be exploited by cross-border criminal syndicates.
Professor Dr Siti Norul Huda Sheikh Abdullah of Universiti Kebangsaan Malaysia's (UKM) Cybersecurity Research Centre supported making e-KYC, including solutions such as MyDigital ID, mandatory for every eSIM purchase in Malaysia to strengthen accountability.
“Although this regulation adds an extra layer of screening during the purchase process, it makes accountability easier if there is misuse or service failure,” she told Bernama.
She stressed that accountability and shared responsibility among users, network providers and enforcement agencies were essential in responding to fraud and security incidents.
Siti Norul Huda said identity verification systems should match facial recognition data with valid official documents, such as MyKad and passports, to establish identity authenticity and meet international standards.
She added that verification systems should adhere to the principles of Confidentiality, Integrity and Availability (CIA), undergo risk assessment based on NIST SP 800-63A-4, and be supported by direct integration with the National Registration Department (JPN) database.
Such measures, she said, could help prevent anonymous account ownership and the illegal sale of eSIMs through e-commerce platforms.
For foreign travellers, she proposed completing identity verification online before arrival in Malaysia, avoiding the need to queue at physical counters. She cited Singapore's MyICA portal as an example of an approach that could be considered.
On the issue of anonymous profiles, she noted that mobile lines not registered in Malaysia do not necessarily lack registration records in their country of origin. However, local authorities may face difficulties obtaining reliable subscriber information quickly for criminal investigations.
She was optimistic that introducing roaming duration limits would not significantly affect smart vehicles and IoT devices, as the specific needs of these sectors are among the matters being considered through MCMC's consultation.
Meanwhile, Prof Dr Ainuddin Wahid Abdul Wahab of the University of Malaya Faculty of Computer Science and Information Technology said mandatory e-KYC could make the tourist eSIM market safer and more trustworthy.
“Right now, buying is very easy, like buying tickets online. However, if e-KYC is made mandatory, the process will be similar to opening a digital bank account, which requires identification documents and a selfie,” he said.
Although the additional verification could add a few minutes to the registration process, he said it would help protect users against identity theft and fraud.
Ainuddin likened the lack of identification requirements in the foreign eSIM market to “locking the front door but leaving the back door wide open”.
He explained that when police trace a number used by scammers to an anonymous foreign eSIM, investigations could reach a dead end overseas because reliable subscriber records may not be readily available.
MCMC has invited mobile network operators (MNOs), mobile virtual network operators (MVNOs), eSIM platform providers, technology integrators and members of the public to submit their feedback by email to **pc.roaming@mcmc.gov.my** by October 30.
The feedback will help the commission assess the need for regulatory intervention and determine an appropriate approach to governing international roaming-based connectivity services in Malaysia.
-- BERNAMA
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