A Sessions Court Judge said it was clearly proven that accused Fathi Munzir Nadzri, 29, committed the offence, but a psychiatrist confirmed that he was suffering from Bipolar Affective Disorder with Psychotic Features Manic Phase.
"Yes, he did it but on the balance of probabilities, he was found to have done it while he was in an unstable state of mind and did not know that he was committing an offence," the judge said.
Nadzri was charged with causing damage to the statues at the Sree Muneeswaran Aman temple in Ipoh last year and being in possession of a machete.
Malaysia is a Muslim majority country but has a minority population comprising ethnic Hindus and Chinese.