The live action remake of the classic animation was due to hit Malaysian cinemas on Wednesday (15 March), but the corporation have postponed it pending an “internal review”.
As previously revealed, the “gay moment” is merely LeFou dancing with a man in a dress at the end of the film.
However, Malaysia’s Film Censorship Board considered this to be inappropriate, telling AP: “We have approved [the film], but there is a minor cut involving a gay moment.
In response, Disney said in a statement (via Bloomberg) that “the film has not been and will not be cut for Malaysia”.
It now remains unclear when - if at all - the film will be released there.
Homosexual activity is illegal in Malaysia under both secular and religious laws, with those found guilty of any offences facing up to 20 years in prison.
Gay characters are allowed to be shown in films, however, but only if they die or are seen to repent and become straight.
Meanwhile, Russia has slapped an adult rating on ‘Beauty And The Beast’ over the gay moment.
‘Beauty And The Beast’ arrives in UK cinemas on Friday 17 March.