I refer to the letter from Bilal, 'DBP should clearly label term as derogatory'.

To be fair to Dewan Bahasa dan Pustaka, my copy of the Kamus Dewan (3rd Edition, 1998) does state right at the very beginning of the entry for ' keling ' that the word is "kata yang kurang halus bagi orang yang berasal dari selatan negeri India" (i.e. crude/improper word for people originating from southern India) and adds further "lebih halus dipanggil orang India" (more properly called Indians).

There really is not much more that DBP could have done to clearly label the term as unsuitable and advise its readers to use an alternative word - aside from actually forbidding its users from using a particular word (which no respected, credible dictionary in the world would ever think of doing).