Malaria was reported in Egypt in one confined area somewhere near Cairo, but that was a good few years ago now. There is no need to take anti-malaria medication when visiting Egypt, although it appears that some places give out the wrong information when asked.
I met a couple in Nuweiba who had been told that they needed to take the tablets and were charged a fortune for them privately. They were most upset when they found out it was not needed!
As Sharmer indicates, you would be wise to take plenty of repellant spray for mossies and other little biting insects which can often be present.