Excellent screen display? Tough one 14" with your budget 
Lagging - most of "lagging" for users like you experience is due to the slow HDD or insufficient RAM. The solution is to go for SSD and get at least 4G (8G if you multitask a lot or edit big picture or video files).

Asus
K46CM-WX090H, i5-3317U + Nvidia GT635M@RM2199[2kg], 2GB, 500GB, W8, OD

Dell
Vostro 5460, i5-3230M + GT630M@RM1,899[1.54kg], 4GB, 500GB(5400rpm), Ubuntu 12.04, 3 cell; W8SL@RM2,099

HP
Envy4-1238TX, i5-3337U + AMD HD8750M@RM2099[Beats][1.75kg], 2GB, 500GB(5400rpm), W8

Lenovo
Z400, i5-3230M + Nvidia GT740M@RM2099, 4GB, 1TB, W8; 2 years warranty

Prices are RSP, negotiable.
Use the remaining of your budget to increase RAM (Asus, HP) (4G stick ~ RM80), extend warranty (Dell 3 years ~ RM250, HP ~ RM300), SSD to swap out HDD (256G ~ RM600+/-, 128G ~ RM300+. Most important upgrade that you can do to address the "lagging" feel).

All 14" consumer laptop come with HD (1366x768) screen, so definitely can see HD movies. "Picture look nice" - this is very subjective I suggest you go and look at the real things to determine yourself 

Yes, for all the models suggested, you can change HDD to SSD. Re-seller will do it for you normally. The Z400 is the most tricky one to (need to tackle 20+ screw, take out ODD, keyboard ... ), the other models is quite easy

Personally? 
I am not buying Asus in Malaysia until its warranty support service improve (it is very tiring for me to resist the temptation ). The Z400 has the most powerful spec, but it is cumbersome to maintain (e.g. clean dust) so I'm not keen.
That left the 5460 & the Envy 4. Both has nice speakers + sub-woofer (I think the HP sound slightly better). 5460 is lighter, has 2 internal fans (I like). Envy 4 has better GPU. 5460 only has 1 RAM slot (I don't like). Dell has better warranty support. Envy 4 should give better battery performance (ULV CPU), but the 5460 come with 50Whr battery (even though only 3 cell) so it won't be too bad.
I will go with Dell as I am a sucker for good warranty support