Gosh, I don't know. The leotard is a little higher than necessary on the upper leg. If she's a Muslim representing her Muslim homeland, I'd think the sports groups have some rules to follow, and they're none of our business.
It would bother me if a Muslim representing the US expected to not comply with US uniform regulations.
But like the Malaysia's minister of sports said that only the almighty can judge her attire, not the general public. Also that it was hypocritical for people to get upset over a woman wearing a leotard, yet remain silent over men wearing speedos while swimming in competition.
He is exactly right and they need to get over it