The man, 33, whose nationality has not been revealed, was arrested on Tuesday by North Klang District police, The Straits Times reported.
On June 24, a video posted on social media showed him skinning the cat, which appeared bloody and motionless, as he spoke to the camera in Malay. As of Wednesday, the video had been shared on Facebook more than 250 times, with many commenters denouncing the act.
The Malaysia Animal Association later enlisted the public to help provide information on the man, offering a RM3,000 ($636) reward.
The organization said further investigation would be needed to verify the man's motivations. He is being investigated for animal cruelty, and could be jailed for up to three years if found guilty, the Central News Asia reported.