10 Million Fine or 10 Years In Jail: Malaysia's New Rules For ‘Finfluencers’

A new round of restrictions on fininfluencers who give controversial advice on social media promising quick ‘money releases’ has come—the revised advertising guidelines by the Securities Commission (SC) are effective from 1 November, 2025.

The guidelines state that finfluencers who frequently promote capital market-related products and services will now be treated as advertisers and will face legal penalties if they do not have a license.

Fines And Penalties Are Stiff

The rules state—it is illegal to promote capital market-related products or financial plans without a license; the prescribed offense can be punished with a maximum fine of RM10 million (S$3,139,745) or 10 years in jail. The informational impact of this punishment sends a strong message to the continued online advertising in the market.

Educational Content Opening Up

A key exception to the new guidelines is educational informative content—if it is only of the informational type and does not influence anyone’s investment decision, it is exempted. In addition, the obligation to clearly identify the content has been brought in if it is an advertisement.

Netizens’ Reaction

Many netizens have welcomed the new policy. Some believe that this step is very important to stop false or misleading content.

Others have said that just as in other countries including China, certification is required before talking about important issues; Malaysia should also have that standard.

Other comments have come that such ‘gurus’ should have to pay both licenses and taxes and the same rules should apply to property, finance, and law – in all areas.

Expert Opinion

Economists and experts leading the industry body MFPC say that this rule has been needed for a long time because unauthorized advice can lead to the rise or fall of a person’s wealth. They believe that this will create an environment of client-centric, trustworthy advice.

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