Senior police official R Munusamy said the drug was seized at a house used as a storage for the substance in Rawang.
He said the seizure was discovered following the arrest of the Indian national, who was not identified, yesterday.
"When we arrested the man, we found two packets, each containing 5kg of white powder believed to be ketamine," said Munusamy.
"Following the arrest, the suspect led us to a house in the suburb of Rawang," he said, adding that when they raided the house they found 762 gunny sacks, each containing 25kg of the same white powder.
"We have sent the substance for analysis to verify that it is ketamine.
"Both men have been remanded to help with investigations," he said adding that the drugs were believed to have been brought in from India.
Malaysia has a mandatory death penalty by hanging for anyone found guilty of carrying more than 50 grams of a drug.
Few people have been executed in Malaysia in recent years.
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