IGCSE is another 5th form exam, like SPM, O level, or GCSE.
They are considered to be of equivalent levels even if difficulty varies significantly among these different exams (traditionally O level is more difficult than GCSE or IGCSE - and it still is - but this is highly debated).
Of course there is a difference between IGCSE and SPM. Firstly, the syllabus is very different - IGCSE's syllabus will depend on the exam board (Cambridge/CIE, Edexcel, AQA, OCR etc) though in Malaysia you will either take Edexcel or Cambridge or both.
Secondly, the same IGCSE exams are taken by students all over the world (mostly from Britain, Ireland, and English speaking Asian and African countries) - perhaps by more students than SPM. IGCSE is entirely in English (except for languages obviously) and is recognised the world over (although the same would probably apply for SPM).
I don't think anyone would stop you from taking SPM. If you take IGCSEs in addition, that just means you have more subjects/grades, because these are considered to be of the same level. It is the same as a student who takes a mixture of O levels and IGCSEs or GCSEs and IGCSEs. Since IGCSEs are just (mostly) exams you sign up for (with occasional oral assessment and practical exams), anyone can do it anywhere as long as you have an authorised centre (school, British Council, college etc) which can organise delivery of the examinations.
IGCSE has the same use as SPM or O level or GCSE - to get further in you education, that is to say to progress to 6th form and beyond. If you want to enter university, you should complete subjects at IGCSE/SPM and A level/STPM/IB before you can proceed in the ordinary way (obviously there are also foundations and diplomas).
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