The decision made by the 31-year-old, who plays as a winger for Hino Red Dolphins in Japan, came just days before the Hibiscus' opening match against South Korea at the Bukit Jalil National Stadium on Saturday.
"Unfortunately I would be pulling out from the entire tournament for personal reasons.
"Without elaborating too much, it is just not a correct environment for me to be playing at the moment.
"I would rather give my jersey to someone who could put in 120% for the team.
"I am very sad about it and everyday I wonder if I have done the right thing, but I am a man of my word and I hold my principles very close to my heart, so I will not be joining this campaign.
"If things fall into place for next year, I would love to represent the Hibiscus again," Le told Astro Arena.
It was a huge blow for the national team, who were already without the injured K. Dineshwaran, the second Malaysian playing in a professional rugby league abroad after Le, in their quest for 2019 Rugby World Cup qualification.
Malaysia need to come out on top at the Asian Rugby Championship to reach the Asia/Oceania Zone qualifying playoffs and then the Repechage stage to book their ticket to Japan.
