He said staging the rally at the heart of the capital city, which is a tourism area like Bukit Bintang, Petaling Street and Pudu would be dangerous.
The intention of the rally could also turn provocative, he added.
Chong said Malaysia should learn from the experience of the recent Bangkok bombing where it was estimated that between six and nine months were needed for tourism business to pick up again.
He urged the police to take action against those who distribute posters or make remarks of a seditious nature and not wait until Sept 16 to do so.
Chong, who is Deputy Education Minister, was speaking to reporters after opening BrainFit Studio here Friday afternoon.