DEFAMATION

Defamation means any untrue remarks that is exposing individual to public condemnation, contempt , hatred or ridicule and would bring to damaging one's reputation. Defamation would occur if such accusations made in public or around more than two person. Defamation made could be with the intention of joking around within friends, but if it affect the person, be it reputation wise or what not, the person have the right to sue under the Defamation Act 1957.

An example of a case;
http://www.mole.my/content/malaysian-pay-rm100000-over-facebook-defamation

MALAYSIAN TO PAY RM100, 000 OVER FACEBOOK DEFAMATION
October 1, 2011

KUALA LUMPUR - A Malaysian court has ordered a man to pay 100, 000 ringgit ($31, 000) for defamation a mechanics' training center on Facebook, his lawyer said Saturday

The high court in the Northern state of Penang said Leong Yook Kong defamed the centre, where his son had studied, through three posts on the social networking site last year, Leong's lawyer K. Paramanathan said.

Leong, a 64-year-old retiree, posted the comments implying the centre was guilty of fraud and corrupt practices after his son failed an examination for a diploma in vehicle maintenance and repair

Leong now has to pay a total of 100, 00 ringgit in damages and costs, Paramanathan said. He is also not allowed to publish further defamatory statements

Paramanathan said it was his first Facebook defamation case but he could not say whether other such suits had succeeded in Malaysian courts

Malaysians are avid users of social networks and micro-blogging sites.
Earlier this year, a Malaysian social activist agreed to post an apology to a company on Twitter 100 times after it threatened legal action over his allegations it had badly treated a pregnant friend of his who worked for it.

In this case, Mr Leong is guilty of slandering the centre, as defamation is stated to occur when the party is being slander and hence affect their reputation bbe it on the name or on the business profitability. Any issues should be brought up properly, not by such public slandering through social media, because it would eventually back fires, this shows such law or act is important to be amended.