Amp sound & quality depends on price and you pay for what you get. 

I tried a budget Smarvo (around RM300) Bass Amp and the speaker was already distorting at low voume levels!

My suggestion is to spend a little more on something branded like Marshall, Fender, Vox, etc or try a decent 2nd-hand one.  At least with these amps, you'll get something of a decent 2nd-hand value for when you get better and trade up to a better one (which will happen to ALL of us)!

Good luck! 

I want to get a guitar and an amp with budget around RM1.3k.

What are the products which worth this amount of money?

Or, shall I spend a little bit more to get better stuffs so that there is no distortion problem?

hmm bro..

you can try Ibanez SA120 + Roland Microcube...

should be able to fit your budget

Actually, if you can get a right-handed Squire and string it the other way round for a lefty - you'll get a Hendrix style setup, which should be really cool!

Just make sure you get an Olympic White one like o'l Jimi's!