I know that certain countries, Malaysia especially, do not acknowledge dual citizenship - even if the person is not holding, nor ever held Malaysian citizenship (i.e. someone who is a dual US/Canada citizen).

I thought I recall reading about a situation where someone entering Malaysia was found to have two passports (non Malaysian) due to dual citizenship while being inspected - and the Malaysian authorities confiscated one of the passports. Is this situation possible? Or would they only apply this law to someone attempting to hold Malaysian citizenship along with that of another country?