My 2 cents...
Malaysia is a democratic and secular country where every citizen is free to practise and belief what they wish to believe.
As such, the government should not be the moral guardian for Malaysian citizens.
At the end of the day, its ENTERTAINMENT.
I have utmost respect to the wishes of the muslim community and Beyonce's concert could violate their religious beliefs. At the same time, there are others whom do not believe in god (atheists) or practise religions that can tolerate sexy outfits and suggestive dance moves and THAT they wish to attend this concert.
Perhaps one way to resolve this issue is in the future the government should impose a BAN for muslims to view/attend the concert if the artist's sexy outfit and stage performance is an issue. The promoter shall not sell tickets to muslims and the authority should also get JAIS to ensure no muslims enter the concert compound. This is a win-win situation I believe.
Cheers.