Upgrading from a h.city to any of these two will sure give the wrong impression.
Since both of these cars are already at a different league. NA 1.5 to Turbocharged engines.

My advise, don't compare how better these cars are to your old ride. Set new benchmark and compare them between your choices.

One thing is for sure, Jetta would have almost no turbo lag at all, the Germans are better at that in this perspective. Don't just test drive by flooring it, how the car behave in stop and go traffic is important as well. It drives you nuts if the traffic requires you to control your throttle to hover around the RPM where turbo is kicked in. 

Test drive both cars and see which one you like more including interior and exterior.

Both can be problematic cars but Jetta is on the upper hand.

Lolx... you didnt get the sarcastism at all.

No.  What sarcastism are you talking about?
I was serious about the Vios.  No joke, I AM SERIOUS.   

Did test drove the Jetta before and given it's small 1.4TSi engine, the power/torque is pretty decent and DSG shifts are just superb. But the accessories of the car is pretty bare. No HID/projector headlights, fabric seats etc. For that price, I just couldn't justify the purchase. Plus with all current cases of dry DSGs being plagued with failed mechatronics and clutch packs, it just doesn't make sense to trouble myself in the long run after the warranty period ends.

With the inevitable fuel hike and reduction of subsidy soon, why not consider a diesel? A 2010 BMW 320d is as low as RM130k nowadays (should be even lower next year). You get the torque of the 3.0L turbo petrol (380nm) and a decent horsepower of 184bhp. Plus, no dry DSG fault nonsense. And the diesel engine + ZF 6-spd gearbox is bullet-proof and proven. Brand, power, reliability and RWD fun all in one package, albeit being an older car.

A visit to few dealers saw some with as low as 35k km milleage with warranty and BMW'S BSRI still intact.

Those skeptics will say Malaysian diesel is dirty and smells bad but they will eat humble pie once you smoke 'em (sometimes literally) with your torque monster and yet claim a FC of 6-7L/100km. 100% city driving + rempit mode on 50% of the time still get you a 700km per full tank while pure highway driving gets you 1000km per tank.

Here's an example of current one on sale:
http://www.mudah.my/BMW+320d+M+SPORT+LCI+F...KD-23592923.htm

Like I said, both are problematic but u can take a look compare between the 308 and Golf TSI, the second market for 308 at year 2011 left only 50% of the price and Golf TSI is about 70% of the price left. That is why I said the VW is on the better side as compared to Peugeot.

Well in general, all continental cars have bad resale value, and the first owner took most of the hit for the first 2-3 years, it's a known fact, regardless of badges. Just search on Mudah for the same year 320i (petrol version of the E90) and the same depreciation is applicable. There's nothing to do with the car being diesel or not. To add to the fact that most Malaysians are not well-educated when comes to diesel just make the resale value worse, which makes the car a bargain to get as compared to the other 2 which TS is considering.

Also, what makes you think that the total ownership cost of the other 2 options are better than the BMW by the way? Do you own a any of the 2 or BMW currently or in the past to justify your statement?

I just got mine recently after much consideration which I was initially torn between the Jetta, used Passat and the 320d. It's basically a no brainer choice in the end when I found my current unit. Joined the 3er diesel group and has found various more than satisfied owners of the same car. Heck, there is this guy who clocked 223k km milleage (claimed to be the highest clocked 320d in Malaysia) on his 2009 320d and yet the only parts replaced are the shock absorbers and oil sump nut, apart from the usual engine oil, filter and ATF change. Faultless engine and gearbox.

Yes, BMW is never known for reliability (has my fair share of experience owning the old 3er E46) but this diesel is just different. Coupled with the great fuel consumption but still get to enjoy 380nm of torque, it's just a well-rounded car.

Well, all 3 falls within the same price range of sub-130-140k ish so its just make sense to compare all. Jetta has a 12k discount so that makes it a very interesting option, especially since it's a new car. But after reading much about the 320d, test drove and found a very sweet deal, that just seals it.