The Cabinet released a statement yesterday saying that Malaysia no longer needs its "morality police"; the question of personal behaviour and morality should be left to the family instead.
Context: Overzealous Muslims
I've always believed that religious morality is the responsibility of the individual. Religion is about choice, after all -- therefore, whether we choose to be religious or not should also be a choice left to the individual. As long as your decisions affect no one else but yourself, and/or other consenting adults, then the government has no place governing your behaviour.
One day we all will answer to God. If you believe in that, then that should be a powerful enough incentive to confine your behaviour to within the doctrine of your religion. If you don't believe in that, no one really has the right to force you to.
UPDATE: This is an interesting article, related to above about morality and Islam in Egypt: A furor in Egypt over sex in a conservative society