In the Name of Allah; Most-Merciful, Most-Compassionate.
We don't often think about Malaysia when we are considering overseas studies in Islamic Studies, mostly because it is not an Arabic speaking country. That being said, let me offer some interesting bits of information about schools and options of studies:
(2) International Islamic University of Malaysia (IIUM) - Offering BA, MA and PhD programs in Islamic Studies (English and Arabic options), as well as a complete offering of other fields of study from dentistry to sociology, IIUM is working to combine Islamic knowledge with all other sectors. Degrees from IIUM are generally accepted in the "west" and it is a well recognized, established and competitive University. It is also known for its Islamic Finance programs.
There are a plethora of Islamic Universities in Malaysia in addition to these two, having not lived or studied there I make these two recommendations based upon comments made to me by others and my teachers. I hope some readers will make other good suggestions about studies in Malaysia in the comments section. Barak Allah fiikum.