"Terrorists may be planning attacks in and around Kuala Lumpur. Attacks could be indiscriminate and may target Western interests or locations frequented by Westerners.
"You should be particularly vigilant at this time," it said in a travel advisory published today Australia's Department of Foreign Affairs and Trade website, smartraveller.gov.au
It maintains that Australians should reconsider travel to the east coast of Sabah, where several tourists have been kidnapped by militants.
Australia's warning comes after the British government raised the terror threat level for East Malaysian resorts last week.
The British Foreign and Commonwealth Office advised against all travel to the Sabah eastern islands, raising threat level from "general" to "high".
Last September, the United States and Australian embassies in Kuala Lumpur warned of possible terror attacks in the shopping district of Bukit Bintang.
Police had said that it is working with the intelligence units of the two countries on the matter.
Dozens have been arrested over the past year over suspected links with the militant group IS.
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