I am trying to choose a camera that suits my parents the best.

They are not too auntie/uncle type, they are pretty good with technology, which is why I don't wanna just pick a point & shoot compact camera.

My first consideration was canon g1x mark II. I am thinking perhaps slowly one day they can pick up some knowledge regarding shutter speed, aperture, etc. At least they will have the option to shoot photos under certain difficult circumstances (eg night shooting)

However my dad is pretty clumsy and he drops stuffs on the ground pretty often. In that sense I start to look for something shock-proof and water-proof (they love visiting islands).

So is there a camera that is shock-proof, water-proof, takes really good quality pictures and quite portable?

Compact system cameras like Sony RX100 series is pretty good. But it aint shock-proof nor water-proof. On side note, your parents will probably think it's just a point and shoot anyway judging by its appearance.

Just tell your dad, RM100 mkIII cost RM3k, he will probably take real good care of it.

G1x m2 is slightly inferior to RX100m3 even canon puts it as its direct competitor. But when you delve deeper, the canon is lacking in quite a bit.

If you're going for water proof ones, take a look at Olympus's rugged range.