I've been to Malaysia many, many times and find it a really great place. It is of course a Muslim country, but all other faiths have constitutional rights. The Sharia laws only apply to Muslims.
Langkawi is a resort island near the Thai border. It is a major tourist attraction and source of local employment and income. I suspect that this episode was the result of a local official trying to make a name for himself in his boss' absence. He will be dealt with quietly, but thoroughly.
Many many of us here cannot distinguish between moslems and terrorists. You may not like moslem culture and religion, but the fact there are moslem countries is NOT the same as the fact there are terrorists and terrorist supporting moslem countries. The simplest proof of this is that MOST moslem countries are allied with the USA or at least not helpful to terrorists. Examples? Kuwait, Egypt, etc. Saudi Arabia for all the problems there is the number one target of Al Queda.
IF all these countries were our enemies, the WOT would be very very different. I don't want any Sharia law here, but Malaysia is NOT the United States.