Derived from the word "Lmao" meaning, "laughing my ass off", but a more poorly articulation. It can also be paired with the word "eksdi or "ekisdi" (from the word XD) as a means of a more fancy and artistic way of saying it. Also, adding a "?" at the end can emphasize that you are trying to ask if what someone told is funny or you simply didn't have anything to say. It can be mostly applied if you want to be sarcastic or ironic.
Me and a friend of mine was trying to pronounce words backwards and one of which is the lmao. Then we often say it, to the point that it sounds better than just "lmao".
Malao, he's just being funny.
Waaw, She's so smart, Malao eksdi
Person 1: Dude that dude throw a fan off that balcony.
Person 2: Malao?
Person 1: Dude that guy got so scared he shit of his pants.
Person 2: Malao ekisdi