
In a Facebook post, Sim, who is also a federal minister, said such gatherings would only “stoke the flames of hate that could destroy the country.”
“Cancel the demonstration, stop the provocation and do not create chaos. I have asked the police to ensure that no provocative gathering is held by any party.”
It had been alleged that the shrine was built illegally.
However, several Penang politicians have rebuked the claim. Senator Dr RA Lingeshwaran said the shrine had been around pre-independence.
Former Penang deputy chief minister P Ramasamy previously said shrines were built near hospitals because most of their workers were Hindus.
The planned gathering in Penang comes weeks after a planned rally against so-called “illegal” houses of worship failed to take place in Kuala Lumpur.
It also comes in the wake of the partial demolition of a Hindu temple in Rawang last month.