Nope, there are ultrabooks that are powerful in terms of gaming performance (mainly because there's no strict regulations on the definition of an "ultrabook")
Can consider these:
From strongest GPU to weakest:

15.6" Acer [Ultrabook] M3-581TG-52466G52, i5-2467M + Nvidia GT640M@RM2599[2.25kg], 6GB, 500GB
14" Acer [Ultrabook] M5-481TG-53316G12, i5-3317U + Nvidia GT640M LE (28nm Kepler) + 128GB SSD@RM2899[1.85kg], 6GB, W7HP
14" HP [Ultrabook] Envy4-1043TX/1053TX, i5-3317U + AMD HD7670M + 32GB SSD + 500GB HDD(5400rpm)@RM2599[Beats][1.75kg], 4GB, W7HP
14" Dell [Ultrabook]Inspiron 14z, i5-3317U + AMD HD7570M + 32GB SSD + 500GB(5400rpm)@RM2599[1.87kg], 4GB, 500GB(5400rpm) *no VGA port
14" Dell [Ultrabook]Inspiron 14z, i7-3517U + AMD HD7570M + 32GB SSD + 500GB(5400rpm)@RM2899[1.87kg], 8GB, 500GB(5400rpm) *no VGA port
13" Asus [Ultrabook] UX32VD-R3001V, i5-3317U + Nvidia GT620M + 24GB SSD + 500GB HDD@RM2999[1.3kg], 4GB, W7HP

AMD HD7670 is around the level of Nvidia GT630M/ GT540M
Not bad already for a laptop that's priced around RM2k

Here are the specs for the Y480:
Y480, i7-3610QM + Nvidia GT650(GDDR5)@RM2499[JBL], 4GB, 500GB(5400rpm), backlit keyboard, FreeDOS
Y480, i7-3610QM + Nvidia GT650(GDDR5)@RM2799[JBL], 8GB, 500GB(5400rpm), backlit keyboard, W7HP, 2 years international warranty *dealer version only (Not official)

Better go for the FreeDOS version, at least the RAM in there is 1600mhz

Laptops with AMD llano would be most suitable for you

If you don't mind a 15" notebook, then:
Asus A53TK-SX131V, A6-3420M + AMD HD7670M@RM1699, 2GB, 500GB, W7HP

So far there isn't much laptops with AMD llano and AMD HD7670M unfortunately... only those with AMD HD7450M etc.

If your engineering program involves a lot of rendering that requires CPU power, then going for an i7 would be better. Quad core i7 are better than i5 processors, even if its 3rd gen vs 2nd gen (in terms of CPU performance).

For your budget, just go for the Lenovo Y480, it has a good CPU and GPU:
Lenovo Y480, i7-3610QM + Nvidia GT650(GDDR5)@RM2499[JBL], 4GB, 500GB(5400rpm), backlit keyboard, FreeDOS

* use the remaining money to upgrade RAM to 8GB (for rendering), get a copy of Windows and also extend warranty to 3 years (onsite if desired), it should be within Rm3k

Pretty much Asus N56Vz..
If you are willing to sacrifice more weight for performance, then Lenovo Y580
Lenovo Ideapad Y580, i7-3610QM + Nvidia GTX660M (2GB) + Bluray@RM3399[JBL], 8GB, 1TB HDD(5400rpm), W7HP, 2 years international warranty

If you are willing to sacrifice performance for a cheaper laptop, then Dell Inspiron 15R SE:
Dell Inspiron 15R (Special Edition), i7-3612QM + AMD HD7730M + (1920x1080; anti-glare) + 32GB SSD + 1TB HDD(5400rpm)@RM3199, 8GB,backlit keyboard optional

The Y580 is already in Lenovo's brochures, not really sure whether its available in stores already or not though..
the following are some thread on the Y580 (and rivals )
http://forum.lowyat.net/topic/2383549
http://forum.lowyat.net/topic/2392413

AMA llano, although being pretty powerful in terms of GPU, suffers from issues with GPU compatibility based on what I've read

HP G4 has pretty good speakers
Pretty cheap you get for the G4, the RRP is RM2199 Staff price?

Thanks for sharing~
I remembered this model, it used to be priced at RM1999 as well... I've removed it from the pricelist as I thought its EOL-ed already, seems like I was wrong...
This is currently the best laptop for a budget of RM1.6-1.7k

The GT640M LE, despite being alot weaker than the "true" GT640M (Kepler), is still better than the AMD HD7670M...

Nvidia has Optimus; AMD has BACON (better check whether the unit you are interested in has it or not, but usually its there). However BACON is still not very matured yet compared to Optimus

The earlier version of the Y480 has GT640M LE.. the new on has a full fletch GT650M

Unfortunately laptops with FullHD and good screens are not cheap
You can try to bargain for the Dell Inspiron 15R SE, one of my friends managed to get a quotation for this unit at RM2.7k only..
Here's a review on the unit: http://www.notebookcheck.net/Review-Dell-I...ok.78323.0.html

Best bang for buck gaming laptops goes to:
14"
Budget
HP Pavilion G4-2026TX/2027TX, i3-2350M + AMD HD7670M@RM1699, 4GB, 640GB(5400rpm), W7HP; colors: black/red

Mainstream
Lenovo
Y480, i7-3610QM + Nvidia GT650(GDDR5)@RM2499[JBL], 4GB, 500GB(5400rpm), backlit keyboard, FreeDOS
Y480, i7-3610QM + Nvidia GT650(GDDR5)@RM2799[JBL], 8GB, 500GB(5400rpm), backlit keyboard, W7HP, 2 years international warranty *dealer version only (Not official)

15.6"
Lenovo Ideapad Y580, i7-3610QM + Nvidia GTX660M (2GB) + Bluray@RM3399[JBL], 8GB, 1TB HDD(5400rpm), W7HP, 2 years international warranty

Undisputed at the moment

I have no idea, must've have connection
But the main point is that you can bargain until it satisfies your budget

Notebook batteries are normally only covered for one year (even if you extend warranty to 3 years iinm).. if its within 1 year, then yes, they'll have to replace it for you...
If not, then its considered as wear-and-tear, and they can choose not to change for you

No differences apart from size difference afaik


Other E-450 alternatives are 11.6" in size:
Lenovo Ideapad S205, AMD E-450 + AMD HD6320M@RM1299[1.48kg]

HP
Dm1-4017AU, AMD E-450 + AMD HD6320M@RM1299[Beats], 2GB, 500GB(5400rpm), W7S
Dm1-4018AU, AMD E-450 + AMD HD6320M@RM1399[Beats], 2GB, 500GB(5400rpm), W7HB

MSI U270DX, AMD E-450 + AMD HD6320M@RM1199, 2 years warranty, FreeDOS

Sony Vaio VPCYB35AG, AMD E-450 + AMD HD6320M@RM1499 [1.46kg], 2GB, 320GB, W7S (32-bit); colors: black/pink/green/silver

Din't see that, sorry

Preferred screen size?

Only the 1215b is 12.1"
The others are 11.6"

Don't think there is one
Closest:
14"
VPCEG36EG, i3-2350M + Intel HD3000@RM2099[2.3kg], 4GB, 500GB, W7HB; colors: black/white
VPCEG38FG, i5-2450M + Nvidia G410M@RM2399[2.3kg], 4GB, 500GB, W7HP; colors: black/pink/white

Depends on your definition of light gaming. If it involves FB games only, then yes, the Acer S3 and Envy 4 are good picks

But if you're into more serious gaming, then nope, there are none, at least not under 2kg