Deputy District Police Chief Supt Keong Ho Eng said so far three police reports have been lodged against the woman who made the alleged statement via postings on Facebook.
The report claimed that the woman had insulted the status of Muslim Bumiputeras, spoiled the reputation of SMK Kuhara, was insensitive, showed no sympathy for those on MH17 and tarnished the reputation of Tawau residents.
Keong said investigations would be done under Section 4 of the Sedition Act and that a counter report lodged by the woman would be investigated under Section 500 for defamation.
"Investigations on both sides will be done simultaneously. Thus, we urge the people to be calm and not to spread rumours," he said.
The 38-year-old Facebook account holder, who is said to be an insurance agent and a former student of SMK Kuhara in Tawau, claimed that her account had been hacked and that she had lodged a police report last year.
The woman when contacted by Daily Express said she wants the police and the Malaysian Communication and Multimedia Commission as well as the community to help her find the hacker.
She is disappointed that no action was taken when she lodged a police report when her Facebook account was allegedly hacked.
According to her, she lodged another police report at about 10.32am on Saturday when she found out about her name and face being used in a Facebook account on July 18.
"I leave it to the police and the MCMC to investigate and I want the hacker to come forward," she said, adding that it will clear her name once the hacker is caught.