He told an international newspaper conference in Hong Kong that such plans were in the works due to poor foreign interest in the country's Multimedia Super Corridor (MSC) project.
AFP reported Gan as saying Dr Mahathir Mohamad's administration had initially promised not to censor the Internet as a sweetener to lure technology firms to the MSC.
"Now the government is going to turn back on its pledge and is drafting laws," he said.
Last month Malaysia said it was looking into laws to punish Internet users who try to create public disorder and incite violence against the government on the Internet.
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