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The semi-final action at the OCBC Arena in Singapore saw the hosts produce an energetic performance to lead 36-33 in the third quarter.
The national squad tried to make a comeback in the final quarter but could not overcome the home side.
Malaysia will now fight for third place against Hong Kong who lost 43-67 to Sri Lanka.
The finalists of the tournament will get automatic qualification to the 2023 World Cup in Cape Town, South Africa.
The national squad became Asian champions for the first time in Thailand in 2016 and the last time they played in the World Cup was in 2011. - Bernama