A settlement was reached between the government and Ms Hemy Hamisa Abu Hasan Saari, 28, at the Kuala Lumpur High Court yesterday. However, the amount agreed upon by the government, the constable who recorded the video and the mother of three was not disclosed.
Ms Hemy initially sought RM10 million (S$4.1 million) in damages when she filed her civil suit in 2005.
The widely-circulated video resulted in a royal commission of inquiry, which called the practice a violation of human rights and Islamic principles.
Although the government said that it would ban the practice, two Singaporean women were subjected to nude squats in June this year after they had crossed the Johor border without going through immigration. They claimed that they drove past the checkpoint as there was no officer manning their lane.
The Home Ministry is still probing the diplomatic incident, which has seen two immigration officers suspended so far.
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