I have a feeling that this Mazda 2 might be sharing some of its chassis platform with the Miata MX-5, since both have the 1.5L as option. Most of the time there will be 2 people sitting in the car, only during weekends when we are going out for shopping and leisure drive, there will be 3 to 4 passengers, very rarely with 5. Childless at the moment. If the Mazda 2 has cruise control, I would definitely go for Mazda 2 over City, even with City has 6 airbags.

One can always be too greedy and yet unable to get everything right? That is always the case for all consumers. 
I really hope that choosing a car with a coin flip and won't regret it later. 

I have been waiting since end of last year when it is supposed to launch it. If they do launch it this year, they could still get the hybrid car tax exemption incentive. By right, all current stock car should be cheaper by 4% since govt will refund sales & service tax 10% and implement GST 6%, which comes to a -4% in car price, but the distributors could always argue that MYR exchange rate going down, inflation, or won't bother. If there is a chance for profit, won't businesses take advantage of it? The salesman might give you the 4% discount.

Indeed, Honda City Hybrid is still my first choice because I like new technological stuff, but will update my opinion once I test drive both cars this weekend.
As I heard in a lot of City owner's opinion, there will always be some sort of poor standards fittings/defects in the new City, even my 2005 City, the rubber seal for the door is shorter, as it is designed to fit pre-facelift models and does not fit properly in FL models. I am not sure for Mazda though, looking at the new car, it seems everything is well fitted. Need to properly inspect the test drive car this weekend.
I am driving an old City with CVT, I don't mind that whether the drive is exciting or boring, it is just a RM90k B-segment car, and always there will be compromise in terms equipment. City has cruise control which makes it a great highway cruiser. No comment on Mazda 2 since I have yet to test drive the car, but will do so this weekend.

Yes, will give my feedback here to you guys & gals.
Just to take note, test drive Mazda cars need booking in advance, not walking in. Went there last weekend, no walking in test drive available. 

I wouldn't say I am content with City, especially the newer '06 facelift version. I previously owned 2 City, both clutch CVT, one pre-FL '04 and one FL '06. Build quality for pre-FL is great, apart that I changed the gearbox once after warranty is over. Problem still persists, bought another 2nd hand FL version, build quality is bad, seats are different, NVH is worse. It feels like the pre-FL all parts were fully imported from Japan but assembled locally, and for FL some parts were locally sourced, and they didn't take into account of the "longer" FL version, hence some rubber fittings do not match.

Well hopefully after test driving these two closely-spec cars, I can make a firm decision then.

Yes, I do agree with the seats, not very comfortable after '06 models. However, the seats for Mazda do look a bit.. thin? But ergonomically speaking, M2 is better as it really hugging you.
Yes, their i-DCD transmission has a few recalls back then. Most probably they would have to wait until summer in Japan to perform more test before giving out the ok signal. However, if they launch it end of this year, it wouldn't make economical sense since the CKD hybrid exemption will expire, unless it is extended. Let see how Honda play it out with the govt, since Honda let Proton rebadge their Accord to Accordana and took away their contract away. There must be an undertable deal between Honda and govt (Proton) to compromise for the loss. 
Yes, not on the '04 model, but FL '06 model starts to have all the lack of quality & NVH symptoms. Will post my comments after I try out both cars this weekend.
If M2 has cruise control, I will take it anytime to try out the Skyactiv. However, it does not. I am quite a lazy throttle presser & monitoring speed person, if there is a cruise control on a car, I will use it. 
6 airbags vs 2 airbags, I think both configurations are ample enough, side airbags are good if there is side impact.

leftistledtechnBlackWoodswayfeelmr.hikano

Test drove both Mazda 2 HB (no Sedan even I requested for Sedan beforehand!!) & Honda City today.

Mazda 2 Driver-centric
+ NVH is significantly better, even with 6 speakers, it is ample enough to listen to music since NVH is superb, motorcycle exhaust sound from outside is significantly cut down
+ Engine noise is within acceptable audible level from cabin, even at high rev. It still gives you the engine grunt noise (not loud and very little vibration, but you can hear the rev) for more adrenaline rush, and engine is not or barely audible when you want smooth and comfort driving
+ Interior ergonomics, solid build quality, ICE is much better, buttons are nice to press, many things to play with for driver and side passenger, leather+fabric combo seat, reverse camera, HUD, pedal shifters
+ Acceleration from standstill with full throttle has more omph due to first gear in 6 spd auto when required, but subtle acceleration from standstill can be achieve too, accelerator pedal is nicely calibrated for both driving condition, brake assist at maximum, very little leg force is required for braking
+ Fast changing 6 spd auto, just slightly slower than DSG, smooth gear ratio
+ On par with European car, accelerator pedal like MB or BMW type, the hinge at the bottom with long pedal, not Japanese top hanging type
+ 3 years free maintenance(?)

- Small size cabin, however rear legroom is acceptable (still cramp and unable to stretch leg) even I am in my usual comfortable driving position, switching between seats at the rear is nearly impossible (My hip cramped when switching at rear seat), ample shoulder room for 2 adults or 3 kids as rear passenger, 3 adults is cramp for shoulder and legs
- Bumpy ride (for hatchback), due to firm suspension, like a Toyota Vios, rear passenger will be uncomfortable on long journeys, or on big bumps/pothole laden roads, the jerk is neck-breaking if drive fast over big bump (this could be due to over inflated tires), small road bumps are absorbed nicely, it is designed for spirited driving and cornering, maybe I test drove a new unregistrated car (70km only)
- No cruise control
- Rear boot opening is about 1" less
- 3 years/100,000km warranty
- No center armrest

Opinion: It really is a driver-centric car. If you travel alone or with a passenger most of the time (like a coupe) but due to work/family required to ferry 2 more rear passengers occasionally or family with 3 children, it is a car worth considering. Long legged rear passengers will suffer a lot when travelling long distance. (I am 175cm and can still comfortably sitting at the rear with 1cm of legroom from the front seat, maybe for those 190cm will suffer?)

Will search for a sedan version tomorrow at other Mazda outlets to do proper direct comparison. The bumpy ride could be due to hatchback setup, could be less rear weight so more neck jerking bumpy ride is felt? (Like Myvi?) Will feedback at a later time.
Honda City V Passenger-centric
+ Big cabin!! Rear passengers will be happy, enjoying and longing for more long distance ride
+ Comfortable ride, due to softer suspension, ride feels like driving an old '04/'06 Honda City, it absorb large bumps nicely (1 year test drive car? So softer suspension?)
+ Highway cruiser with comfortable ride and cruise control
+ Linear & subtle acceleration, even at full throttle, you don't get the omph feeling even if you want to
+ 8 speakers, rear aircons & 6 airbags for passenger comfort & safety
+ Bigger boot and boot opening (~1" or ~2.5cm bigger)
+ 5 years warranty & unlimited mileage, free service (labour?) at selected intervals
+ Discount RM2000 now, so about same price with Mazda 2.
+ A lot of cup holders
+ Center armrest
+ Japanese car feel

- Bad NVH, slightly worse than old Citys. Engine roars loudly and vibration can be felt in cabin when at full throttle, but no omph feeling (might as well don't do full throttle driving at all, means no racing), outside noise is audible, tire noise is louder compare to M2
- Interior... As you know, a bit interior rattling sound coming from somewhere(?) in the cabin. Nothing is soft on the dashboard, all hard plastic. Seat material is full fabric, the fabric feels rough and like those type that will come out little lint if a lot of rubbing is done with abrasive pants (not sure will it have lint or not on the long run though), my old Citys seat fabric are much smoother than the new City, old City has soft carpet-like feel

Opinion: If you want a comfortable ride highway cruiser, City is for you. NVH is louder than my old City (Don't know why?), but at relaxed driving pace, NVH it is still acceptable (louder than M2, could be tire noise maybe? Even HRV is the same, noisy tires).
Will update tomorrow for Mazda 2 sedan, before I make my decision.

All feedback are welcome, if you have disagreement with my reviews, please feel free to post it, different person have different feeling/expectation.     

Decision Made! Mazda 2

Summarised decision making thoughts:

Indeed, Honda City and Mazda 2 are close rivals to each other with their own unique merits respectively. I wouldn't say Honda City is a bad car, but one's requirements are different from another person.

1. Style:  I wouldn't be bothered with the styling of the two since I don't trust my artistic sense that much. I trust the designers in Honda and Mazda wouldn't come up with a fridge with 4 wheels design. Both of them have lines and curves which meanings are inapprehensible by myself.

2. Technology: Mazda Skyactiv vs Honda i-VTEC + torque converter CVT. Mazda wins hands down, the Skyactiv are implemented into Mazda 3 & 6 for some time, so it should be reliable. Although the Honda City has cruise control, there are no other interesting features which are technologically advance. Honda Earth Dream Technology is not implemented in the City, apart from the torque converter CVT gearbox(?), the i-VTEC engine remains the same. The only thing that can sway my opinion now is when Honda City Hybrid suddenly launch within this 2 months, which I have been waiting for since mid of last year, but it seems the longer Honda delays the launch, the less chance it will appear in Malaysia as the CKD hybrid tax exemption expiry date is looming close. I personally emailed Honda Malaysia about the Honda City Hybrid, they replied "please wait for the official news announcement", still in limbo to launch or not perhaps? There is a limit to one's patience, and I feel enough is enough at this moment.

3. Usage:
(a) Most of my drive will be with 1 passenger, rarely 2 or even 3 passengers. So, I could consider buying a coupe and still won't feel at a disadvantage, given that there is a coupe in this price range. The one thing I give much consideration about Honda City is because of its cabin space, I owned one '06 City and got poisoned by this. Passenger can sitting comfortably in City. But, I am not married at the moment but will be in the not so distant future, so owning this car for 9 years down the road wouldn't be a problem, even with 3 children. Also, we are Asian size, not European size, how tall can we be? (Some may have bigger waistline though)
(b) As I mentioned, I will be driving up and down Penang - JB a lot, so having cruise control is a big factor. Although City has it, while Mazda 2 don't, the fact that City NVH has not improved but worsen, the engine power is reduced by the power soaking torque converter CVT, and the worsen interior seat quality (girls with shorts where bare skin comes into contact with the rough seat fabric will itch after a while, and the fabric will lint after not-so-long usage, which is shown on 1 year old the test drive cars), are the big let down in the City. Also, after I discovered there are aftermarkets auto cruise module available (e.g. Pivot 3-drive AC) for any car with electronic throttle control system (for Honda is i-VTEC onwards), I could install it on the Mazda 2!
© NVH is not Honda's best areas, at least I feel Mazda 2 has better NVH suppression than Honda City. RM88k car, I don't expect Merc or BMW level NVH suppression, but at least comparable better in the same segment.
(d) More gadgets to play with in Mazda 2 compared to Honda City.
(e) As I mentioned, Honda City is a passenger-centric car, but more cupholders does not always win the competition. Since I always drive alone or with 1 passenger, the cupholders in my City will become keyholders/garbage holders instead, more rattling sound. Sometimes, more storage space will promote putting more things in car, making the car unkept and disorganised.
(f) My buttdyno feels my old '06 City has more acceleration power than the new City (due to the flywheel clutch CVT in old City vs torque converter CVT in new), but may be on par with the new Mazda 2 6-spd Skyactiv auto (torque converter + clutch combo). Mazda 2 is lighter and has better turning radius than City.
(g) Mazda 2 is slightly more fuel efficient than Honda City, just slightly and it wouldn't make much difference with the petrol price now. At least I can drive a bit further between refills.
(h) Small but ergonomically comfortable in Mazda 2. Honda City is big cabin and spacious.
(i) More confidence taking corner in Mazda 2 when driving around corners with the same speed in Mazda 2 & my old '06 City (~60 km/h). I feel the suspension setup in the new and old Honda City did not change much (softer so more body roll), so I assume both would perform similarly. Speeding kills, this statement is not meant to encourage more speed when tackling a corner in Mazda 2!

Hence, this leads to me in buying the Mazda 2 sedan. City is still a close rival to Mazda 2, it is for family of 5 with young adults (B-segment with C-segment cabin space). Toyota Vios (for RV only) and Nissan Almera (something from Nissan to fight B-segment), also the underpowered Mitsubishi Attrage (1.2L CVT?), as well as 3rd in line VW Polo Sedan (1.6 6spd auto).

Updates:
21/03/2015 Test drive 1
22/03/2015 Test drive 2
24/03/2015 Decision made! Mazda 2 Sedan.