The decision to allow Heineken Malaysia and Carlsberg Brewery Malaysia to operate during the virtual lockdown had angered some people in the country that has the highest number of coronavirus infections in Southeast Asia. Malaysia has so far reported 3,662 cases, with 61 deaths.
"In a special cabinet meeting today chaired by the prime minister, we have decided to rescind their approval to operate," Minister of Defence Ismail Sabri told a news conference, saying the matter had gone viral on social media.
Heineken Malaysia said on Sunday it had recently received approval to resume limited operations with a minimal number of workers during the restrictions, which run until mid-April.
"We have an obligation to ensure continuous supply of our products, maintain the employment of our people and to contribute positively to the economic recovery of our nation," it said in a statement on its website.
Its stock, which has lost a fifth of its value this year, rose more than 1% on Monday. Carlsberg Brewery shares were largely flat, in line with the wider market.
"If producing Heineken is deemed 'essential services' then I can think of another 200 services more worthy of that designation," opposition politician Zaid Ibrahim said on Twitter.
Calls made to the offices of Heineken Malaysia and Carlsberg Brewery went unanswered.
(Reporting by Joseph Sipalan and Krishna N. Das; Editing by Simon Cameron-Moore and David Evans)