"We are ready for any orders from the Commander-in-Chief of the Armed Forces. should our services be needed", Malaysian Defense Minister Hishammuddin Hussein said in a speech on Saturday, according to The Malay Mail Online.
"We have to be prepared for any possibilities".
Trump's announcement last week that the USA would be moving its embassy to Jerusalem was a "slap in the face for the entire Muslim world", Hishammuddin said and added Malaysia "should be prepared to face any actuality".
"Let us pray that this dispute would not lead to chaos", added the Malaysian defence minister without elaborating on why he referred to the military being kept ready.
The biased, unilateral and reckless decision from "imprudent Trump" has triggered protests across Muslim world including Pakistan, Turkey, Iraq, Lebanon, Algeria, Palestine, Tunisia, Indonesia and Jordan. In siding with Israel on the matter, the USA president has angered several of America's allies in the Middle East and beyond, triggering violent protests in Palestinian territories, Jerusalem and Beirut.
Thousands of protesters took to the streets of Kuala Lumpur on Friday over the Trump administration's decision.
Indonesia, as the world's most populous Muslim nation, has always been a strong supporter of Palestinians and has no diplomatic ties with the Jewish state.
Jerusalem remains at the heart of the Israel-Palestine conflict, with Palestinians wanting East Jerusalem as the capital of their future state, while Israel says the city, which is under Israeli occupation, can not be divided.
Recognising Jerusalem as the capital of Israel was "aggression not only against the Arab and Islamic Ummah, but are also infringements on the rights of Muslims and Christians alike", it said.