Malaysia is at a crossroad now.

http://www.chinapost.com.tw/business/asia/malaysia/2017/05/08/496915/p3/Chinese-dealings.htm

Like it or not, China will be a domineering force in ASEAN and China has fostered strong relationships with Thailand, Myanmar, Laos and Cambodia which are very near to Malaysia.

If Malaysia doesn't want to deal with China, it will lose its strategic importance for China and also lose China's investments.  China will invest heavily in any country which is of strategic importance to China.  We just need to look at Myanmar and Cambodia where China is building ports and infrastructures in these countries.  As for Laos, China will be turning Laos into a transhipment hub as it is nicely snap-in among a few countries.

Malaysia will lose heavily if China starts to build port in Thailand or the Kra canal.  China can put the Kra canal project on hold as long as Malaysia continues to welcome China's investments because China wants to use Malaysia to contain Singapore.