Intel Core i5 6500 - RM 850
Gigabyte H170-HD3 - RM 479
GSKill Aegis 8GB DDR4 2133MHz RAM - RM 199
Gigabyte GTX1050Ti 6GB GDDR5 - RM 759
Samsung 750 EVO 250GB SSD - RM 349
WD Blue 1TB HDD - RM 219
FSP Hexa+ 550W - RM 199
NZXT S340 Razer - RM 479

Total: RM 3533 (Idealtech price inclusive of GST)

You can consider getting a better PSU if you don't mind spending the extra.

GTX1050Ti doesn't have 6GB version, Idealtech pricelist has a typo on this 

It's either GTX1060 6GB or RX480 8GB for 1k - 1.5k budget, if you don't mind getting a used card, then GTX980Ti 6GB or GTX1070 8GB can be considered too, they are marginally faster than GTX1060 and RX480.

Intel Core i5 7400 - RM 865
Asus H110M-K - RM 279
G.SKill Aegis 8GB DDR4 2133MHz RAM - RM 289
Gigabyte GTX1060 6GB GDDR5 Windforce OC - RM 1385
WD Blue 1TB HDD - RM 219
FSP Hexa+ 550W - RM 219
NZXT S340 White - RM 335

Total: RM 3569 (Idealtech price inclusive of GST)

The price of Kaby Lake CPU is exactly the same with Skylake CPU, the only difference is the mobo, if you prefer to use newer chipset (B250/H270/Z270) then you will need to top up at least RM 250+/-.

Downgrade the GTX1060 6GB to 3GB version to keep below 3.5k (if it is really needed). Same goes to SSD, if you need a 120GB SSD, you may consider to downgrade the GPU further to GTX1050Ti 4GB to cater the cost of the SSD.

The cheapest SSD that I can find at Idealtech is probably Samsung 850 EVO 120GB @ RM 299.

Skylake CPU and Kaby Lake CPU both are having similar price tag, so it is pointless to take Skylake over Kaby Lake, the only difference is the mobo chipset and its price, older chipset (H110/B150/H170) is much cheaper than the latest chipset (B250/H270).

So in this case, I picked the Kaby Lake i5 and pair it with the older LGA1151 socket chipset (H110), BIOS update is required to run Kaby Lake CPU on these older chipset mobo's but Idealtech will do it for you when they assemble the rig for you.

But the problem is that Idealtech doesn't carry Transcend SSD and Idealtech is one of the requirements 
SSD and DDR4 RAM prices are expected to rise even more this year.

i7 7700 is recommended for GTX1070, i5 will certainly bottleneck the card in some CPU oriented titles, other parts are fine though.

If you plan to upgrade step by step then getting GTX1070 first is not a bad idea afterall, after you have enough funds then only upgrade the CPU from i5 to i7 (or whatever that suits the most by the time you are ready to upgrade).

Bottleneck only occurs in CPU heavy/oriented games like Watch Dogs 2, Hitman 2016 etc FYI, for other non-CPU demanding titles, you can tune up the settings to almost max on a single 1080p display for eye candy graphics