The AAM is the sport’s governing body.
A source from AAM told The Sun that its president Tunku Mudzaffar Tunku Mustapha had authorised the suspension pending an inquiry.
He has also suspended two AAM-licenced stewards, who were on duty at the Educational Innovation Motorsports Automotive Race in Kuantan.
“This is in line with policies and procedures. As the sanctioning body, we have to suspend MAM pending an inquiry.
“The two officials too have to be suspended as they were involved in an event which was non-compliant,” The Sun quoted the source as saying.
A go-kart competing in the race veered off track, after three go-karts brushed against each other, and ploughed into spectators in Jalan Sukpa, Indera Mahkota, last Sunday.
Factory supervisor Izwan Isa, 39, and his daughter Nur Zulaikha,5, were killed in the accident.
The go-kart race, open to students of institutions of higher learning, was held on a street circuit with plastic water barriers used as barricades on the straight where the incident happened.
While the AAM is the recognised national sporting association (ASN) for both the International Automobile Federation (FIA) and International Motorcycle Federation (FIM), there is an understanding that MAM would be allowed to carry out sanctioning of grassroots events, said The Sun report.
Police have questioned the three go-kart drivers and investigations are going on.
The Higher Education Ministry, too, has set up a special committee to investigate the accident.