A top finance industry official has drawn fire after reportedly forbidding Muslims from delivering Hindu festive greetings to ethnic Indians.

Fauzi Mustaffar, head of the Islamic law department at insurance company Takaful Malaysia, issued the warning to staff ahead of this month's Deepavali festival, the Star daily reported today.

He said that because the festival involved the worship of Hindu deities, issuing greetings was like practising polytheism and against the tenets of Islam.

"Muslims who have inadvertently wished Hindus a happy Deepavali, happy Durga Pooja or happy Lakhshmi Pooja must immediately repent and not repeat it in the future," he was quoted as saying in an internal email.

Fauzi told the newspaper that the email was sent in response to queries from employees.

Not a fatwa

But Abdullah Mohamad Zin, from the prime minister's department, blasted Fauzi, saying pleasantries were important for racial harmony.

"He has no authority to say Muslims shouldn't wish Hindus (well) because that is like a fatwa (edict)," Abdullah was quoted as saying, adding that only government Islamic bodies could issue fatwas.

"Just because you wish someone happy Deepavali does not mean that you have embraced his beliefs and religion," said Abdullah, who oversees religious affairs.

"In a multi-religious and multicultural country like ours, it is important to live in harmony and be nice to one another," he added.

This year, Deepavali, the Hindu festival of lights, falls three days before the Aidil Fitri celebrations, which marks the end of the fasting month of Ramadan.

While Malaysians of all denominations often join in celebrations, there have been increasing protests in recent years from conservative Muslim groups, who argue Muslims could be committing blasphemy.

The government was forced earlier this year to downplay calls from Malaysia's National Fatwa Council to review joint celebrations, arguing they were in the interests of maintaining racial harmony.