I see you've already done some homework

If you've got a long-term investment horizon, just stick with PRS lo. The savings in SC would have more than enough to offset the 8% tax penalty

Top up of PRS fund no need to submit any documents already right? Just place order online and transfer money to FSM only?

Only for certain funds.

Please...go explore FSM website from head to toes...u paid them Sales Charge, go make full use of the features and info available

It'll be stated under Other Significant Fees for individual fund factsheets.

Only AmDynamic Bond and AmDynamic Sukuk has. Usually only funds with zero SC and close-ended/fixed maturity funds got exit fee.

Redeem and park at CMF waiting for opportunity (which may or may not come)?

Yield is getting scarce, large cap dividend stocks are chased by yield-seekers to the point that yield is comparable to 12-month FD rates.

Redeem
Cons - forgo IRR of 5%
Pros - reduce exposure to risk of capital loss when Bank Negara hikes rates

How

Which mean? 

Malaysian blue chips is already not worth buying

Now I'm going into second liners with decent dividend yields and low gearing

Yup bought in already... but not yet 3K. Will buying monthly till end year to reach 3K.