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He said the decision was made after extensive discussions, analysis and taking into account the current political situation, where the party will undergo reforms and revitalisation.
"During this period, MCA will focus more on preparing for the upcoming 16th general elections (GE16)," he said in a statement.
Voting in Kedah, Selangor, Penang, Terengganu, Kelantan, and Negeri Sembilan will be held on Aug 12.
He said MCA will play a role as a component party to the Barisan Nasional (BN) by assisting candidates in elections.
"It is emphasised that MCA remains steadfast to the founding philosophy of our party which is that any decisions made by the party must be in line with the principles of the Federal Constitution that guarantees moderation, freedom, and democracy, while safeguarding the rights and interests of the people," he added.