The Malaysian Communications and Multimedia Commission was created pursuant to the Malaysian Communications and Multimedia Commission Act (1998) as a new regulator for the communications and multimedia industry in Malaysia. At the same time, the Communications and Multimedia Act (1998) was passed, to fulfill the need to regulate an increasingly convergent communications and multimedia industry.

The Communications and Multimedia Act 1998 is based on the basic principles of transparency and clarity; more competition and less regulation; flexibility; bias towards generic rules; regulatory forbearance; emphasis on process rather than content; administrative and sector transparency; and industry self-regulation.

The Act seeks to provide a generic set of regulatory provisions based on generic definitions of market and service activities and services. The jurisdiction of this Act is restricted to networked services and activities only.

The MCMC took over regulation of the Postal Services on 1 November 2002. On the same day it also was appointed the Certifying Agency under the Digital Signature Act (1997).