"Malu" is a variation of the spelling "Mallu." Mallu is a slang for a person from Kerala, short for Malayalee. It actually refers to a person who was born in Kerala and speaks Malayalam.
The word is derived as a shortened form of the word Malayali. This word is used more during chat, online forums and webpages. The word is not specific to any particular Indian language. Even though this slang is rarely used inside Kerala, it is used extensively in other parts of India and outside India to refer to Malayalis. It is often used as an adjective to address anything related to Kerala, like restaurants, temples, marriages etc.
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