Not true. I had an Israeli stamp on my previous passport and had no problems going Malaysia. Malaysia only bans Israeli citizens.
Hardcore Muslim countries, like Saudi Arabia, Lebanon, Syria, etc, however, will not allow passports with Israeli stamps. You can get the list of such countries from
http://igoogledisrael.com/2009/09/c...es-with-an-israeli-visa-stamp-in-my-passport/
The news is that israel doesn't stamp your passport anymore by default, so this shouldn't be a problem. However, if there's any proof that you have been to israel (eg, an exit stamp at the Jordan King Hussein bridge, which would imply you crossed into Israel), you could still get denied entry to the above countries.
You wont be able to enter Malaysia with an Israel stamp in your passport.