The American R&B singer had been scheduled to perform Wednesday in Kuala Lumpur.
Some Muslim groups said Badu was an unsuitable role model for young Malaysians after seeing a publicity photo of her with what appeared to be temporary tattoos of the word Allah on her bare shoulders.
An Information Ministry official said a government committee decided Tuesday to forbid the concert because Badu has "offended the religious sensitivities" of Muslims by posing with such tattoos. He spoke on condition of anonymity because he was not authorized to make public statements.