It's never going to happen. Too much nay sayers in MS office (regional) that doesn't want the Xbox to be sold here officially due to too much ground work required. Despite Sony has been able to clear all obstacle etc, MS still believes they won't be able to recoup the investment if it's launch here in Malaysia officially.

The local MS office guys wants it, it's the big boys over there who keeps on putting brakes on any attempt to bring it here.

Been there.

Sony didn't invest in the PSN server, that's right, but the investment is in the logistic for PS3 i.e, spare parts, repairs, etc.
Those require investment, and Sony tied up with a local company to do the support services.

If MS did launch Xbox here, the servers will still reside in Singapore due to its geographical location, bandwith stability i.e. the internet submarine cable etc. MS DataCenter is also in Singapore, the same one which handles Live accounts, Azure etc.

When the local MS did the count, there were...a huge amount of Xbox being brought/sold in Malaysia via grey imports i.e. Singapore. So, the Microsofot Singapore Xbox team makes a huge number of sales from grey imports into Malaysia. This could be translated into Malaysian sales, only if Microsoft Redmond and APAC allowed Xbox to be brought in officially.

Things aren't as so simple just to take the Xbox and sell it here, politics in the works, logistics in the works, legalities in the works.

if the network in the office of local MS is down, you'd see them at Starbucks doing emails, calls etc because the server is in Singapore, not Malaysia.

Same goes for Xbox and other services. Still, Singapore is choosen for everything internet MS provides.