Thanks for the detailed reply. 
In this case, it purely depends on what services you wish to receive from Malaysian service provider and very much depending on their application to have a company registration.

If you have any further queries, you can email us on ace@mymagic.my 

With reference to your inquiry regarding expanding your business in Malaysia. Could you please share some details regarding the business activity? This will help us, to give an overall insight about the whole process of the expansion. 

But for starters, if the business activity has any payment transactions involved within Malaysia, then the company needs to be registered. Reason being, in case the company has any local clients from Malaysia, they will prefer paying to a legal entity from Malaysia. 

Furthermore, if the company is applying for any programs inside Malaysia, they will require company registration.