I've been trying to answer this question. According to the Briess web site (malt extract manufacturer, brand popular with home brewers) malt extract is a sweetener resulting from enzymatic activity on malt. It is used in brewing to add fermentable sugar.

The Wikipedia article on malting gives more information. Typically, the heat used to mash malts and produce malt extracts deactivates the enzymes. However, there are enzyme-rich malt extracts available. If you have malt extract for brewing, it is most likley non-diastatic.

Note that malt extract is different than barley powder or barley flour. Malt extract results from the process of mashing malted barley. Mashing activates the enzymes to convert starch to sugars.

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