Youth and Sports Minister Syed Saddiq Syed Abdul Rahman questioned whether the previous BN government had an agreement with the International Paralympic Committee (IPC) to allow Israeli athletes in the country.
He added that the Harapan government has made a clear decision on the matter.
Malaysia lost the right to host the para swimming championships.
The championships, a qualifier for the 2020 Tokyo Paralympics, had been scheduled for Kuching between July 29 and Aug 4.
"When a host country excludes athletes from a particular nation, for political reasons, then we have absolutely no alternative but to look for a new championships host," IPC president Andrew Parsons said in a statement.
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