The circulation of the video came just as MIC is about to host its 70th anniversary dinner today and may be used as a fodder for the party in defence of Prime Minister Najib Abdul Razak.
Najib, Mahathir's nemesis, is set to officiate at the function tonight.
The word “keling” is considered a derogatory reference for Indians in the modern context even though it was not originally considered so when the word was first conceived in the 15th century.
The video was believed to be a ‘Save Malaysia’ event in Langkawi which took place in May.
The circulated clip is 25 seconds long and focuses on Mahathir making fun of Najib's handling of the Islamic State (IS) terrorist group.
"On Najib fighting IS, we can see Najib holding a rifle to fight IS," he said sarcastically.
Mahathir then quipped: "What do the keling say, ‘podah’ (get lost). All lies.”
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