No one makes such knee-jerk reactions, a fighter jet relationship is for 30+ years after all. The IN is still interested in the SH anyway. He believes it's gonna be a political deal for MRFA in favour of the Americans, but that's possible only with the F-35, not the teens. For the IAF, the fighter jet is more important, not the political relationship, and in the SPM, the military decides.
But yeah, the Koreans are the safest political choice for the Malaysians. Going for India will piss of the Chinese and vice versa. Plus some of their neighbours operate the same aircraft. But in terms of capabilities and technologies, the Indian offer will be ahead, especially the one coming in with the new Indian AESA radar and EW suite. Not to mention all the new weapons being developed, like the Brahmos-M, SAAW, Astra Mk3 and a new WVR missile. So it really depends on what they are looking for.
Also, at this time the Chinese are threatening the Malaysians militarily. If they plan to make a stand, then a decision favouring India will show intent.
Fighters jets were scrambled when the Chinese military planes were detected over disputed waters.www.bbc.com
Then there's the fact that the Malaysians also like operating some equipment which the Indians also operate. There have been discussions with Malaysia for them to be part of India's Sukhoi supply chain through HAL since 2015. So the Malaysians are the best bet for HAL to enhance their abilities as a long term supplier.
The single biggest overriding consideration you overlooked - Tejas has Israeli components, so it doesn't stand a chance of winning this tender. Isn't it ?
Irrespective of who wins, PLAAN, PLAAF cannot be deterred by Malaysia by military means. Malaysia knows this, China knows this, Korea too & so does India