Government regulators have long feared the polarising effects of social media on national politics. EPA
Government regulators have long feared the polarising effects of social media on national politics. EPA
Government regulators have long feared the polarising effects of social media on national politics. EPA
Government regulators have long feared the polarising effects of social media on national politics. EPA


Social media needs regulation – and it's coming not a day too soon


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August 14, 2024

When the Malaysian government announced it had plans to require social media platforms and messaging services to apply for licenses earlier this year, there was significant pushback. The proposals by the country’s internet regulator reportedly included “pre-emptive action to prevent offences, a kill switch for content deemed egregious, forced auditing of licensees’ content moderation and algorithm processes, and the requirement to have a local entity in Malaysia that would be subjected to local laws”. There was disgruntled murmuring by some about restrictions on free speech, and potential abuse of rules.

Now it seems, however, that the Malaysian approach, which is due to come into effect at the beginning of next year, has piqued the interest of others. According to the country’s communications minister, Fahmi Fadzil, the UK’s media regulatory body, Ofcom, and the Singapore government have contacted the Malaysian Communications and Multimedia Commission to ask for more details.

“We might be the first mover on this issue because many governments around the world feel that these big technology companies can no longer do as they please to accumulate wealth and not follow rules and laws,” said Mr Fahmi last week. “Those days will soon be over.”

Most people are aware of the tides of harmful misinformation, outright falsehoods and often successful attempts to stir up hatred that have flooded these platforms and services. The recent riots in Northern Ireland and England are just one example of the disruption, terror and destruction that can follow. Across the world, politicians have realised that the big tech companies are not willing, or perhaps sometimes unable, to provide users and societies with sufficient protection, and that governments must now step in.

“We can’t have a situation where it’s seen as some kind of Wild West,” said Irish prime minister Simon Harris last week, after threats to him and his family had apparently remained posted on one platform for two days after the Irish police had asked them to be removed. “The era of self-regulation of these companies is well and truly over. This will be the year in which there will be binding codes, financial sanctions and personal liabilities on social media companies – and that day can’t come quickly enough.”

Most people are aware of the misinformation and often successful attempts to stir up hatred that have flooded these platforms

US Senator Thom Tillis put it even more strongly to the chief executives of Meta, TikTok, X and others at a senate hearing in January. Accusing them of failing to protect children from exploitation, he told them: “We could regulate you out of business if we wanted to.”

For a long time many authorities appeared to think that the big tech firms were just too dominant to be tamed by any local rules. When they were confronted, however, it was clear that the companies would respond to ensure they weren’t shut out of markets.

In 2021, Australia forced Google and Facebook to strike deals with media outlets to pay for content that appeared on their platforms. AI firms are making a series of agreements with media firms whose content they have doubtless already scraped, not least to avoid lengthy legal action. European Commissioner Thierry Breton warned X’s owner Elon Musk about spreading “harmful content” before his livestreamed interview with former US President Donald Trump. Mr Breton may have overstepped the mark by not consulting his colleagues, but the EU’s determination to be at the forefront of social media regulation is clear.

Ireland’s Mr Harris said it was wrong that these platforms did not “come into contact with the same laws and enforcement” as newspapers did. I agree with him, but he also made an important distinction. For as much as there has always been a degree of cynicism about the whole mainstream media ecosystem – “it must be true, I read it in a newspaper” ran the old joke – historically many outlets made huge efforts to get the facts right. To take a personal example, when I worked for UK newspapers, for several years every single word I wrote was read by libel lawyers before publication.

But trust in many of the legacy broadcasters and publishers has been undermined. If you doubt that, you should watch a recent interview by US talk show host Stephen Colbert. Addressing a reporter from a rival network, he said: “I know you guys are objective over [at CNN], you just report the news as it is.” The audience immediately erupted in hysterical laughter, leaving even Mr Colbert looking taken aback.

This is one of the reasons that misinformation spreads so easily on social media. If faith has eroded in what should be the “trusted sources”, suddenly anyone who can string a sentence together can appear plausible to far too many people.

“Just as there is a right of freedom of speech, there is a right for people to have access to accurate information,” Henry Parker of Logically, a UK firm that monitors disinformation online, said this week.

And for information to be accurate it must be complete and provide full context. It is therefore in my opinion an obligation for all the big media companies who are so delighted that Kamala Harris is now the Democratic candidate for US president to explain just why it was that only a few months ago they were describing her as a drag on the ticket and moaned that it was too difficult to dump her.

All those White House correspondents who colluded in the pretence that US President Joe Biden was as “sharp as a tack” also need to come clean about their reasons for doing so; and answer why, if he's mentally unfit to run for office again, he is still fit to have his finger on the nuclear button when he's only “dependably engaged” between 10am and 4pm.

The failure to do so plays into right wing narratives about the "lamestream" media, a term I hate, as it dismisses the work of so many decent, committed people. But the point is that disinformation of whatever kind – and that includes deliberate omission – is too dangerous to be allowed to proliferate. That is one of the main reasons that regulation is coming for social media.

It would ill behove legacy media firms to be too sanctimonious about it, though. Many ought to be examining their consciences and asking if they are truly in the business of providing “accurate information”, or if they too are focused on promoting their own preferred, partisan narratives, which also provoke division and polarisation – just, perhaps, in a less obviously "egregious" manner.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

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Gifts exchanged
  • King Charles - replica of President Eisenhower Sword
  • Queen Camilla -  Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
  • Donald Trump - hand-bound leather book with Declaration of Independence
  • Melania Trump - personalised Anya Hindmarch handbag
Updated: August 14, 2024, 2:44 PM