Mohd Apis Johar from the Young Malay Graduates Movement (GGMM) said he was disturbed by remarks made by Dr Chua late last month, in which he said he accepted Malay leadership but not Malay supremacy.
"Before Merdeka, with a stroke of a pen, two million non-Malays were granted citizenship," the group's lawyer Khairul Azam Aziz told reporters.He added that the money would be donated to any organisation interested in the advancement of the Malay community.
In its notice of demand addressed to Dr Chua, the lawyer who acted on behalf of Mohd Apis, also urged the former Labis MP to retract his statement an issue a public apology.
"The statement of apology must be approved by us on behalf of our client before it is uploaded to your blog," said Khairul Azam in the notice.
He added that they would proceed with legal action if Dr Chua fails to comply with his demands.
GGMM also wants everyone to stop questioning Malay supremacy.
Its spokesperson Nik Rizman Sapian said the group is not linked to any political party but merely interested in defending Malay rights.
"For those who question Malay rights as stated in the constitution, we will not hesitate to take action," said Nik Rizman.
Earlier, the small group, who were outnumbered by members of the media, marched from the Ampang Park LRT station to Wisma MCA to hand over the notice.
The notice was received by MCA official Yap Chin Chin, who said that she would forward it to the party's leadership.
Dr Chua's remarks on Malay supremacy has drawn criticism from Malay leaders including Umno Youth chief Datuk Seri Hishammuddin Hussein who reportedly said that it would be better for BN component parties to join the opposition if they continue harping on the issue.
MCA president Datuk Seri Ong Tee Keat has distanced himself from his deputy by saying the remark is not the party's stand.