From all the data I've gathered, I see the best way to go is subfolder. An exception might be if somebody searches for weddings in Barcelona, I think weddingsbarcelona.com would come first, all other factors being equal. How much that means to you I'm not sure, but if you want a safe way to go I say subfolders, as your SEO efforts for one will also help the other.

Google has stated they are better now at relating subdomain content to the TLD domain, but you're probably still better off using a subfolder. If you do go with a subdomain, make sure to link them in your GA code for better reporting.

There are so many languages spoken in Malaysia that this domain issue is really not going to help visitors on your site. If you're going for consistency, you'd need subfolders or subdomains for all supported languages. If you're only using English, then I wouldn't even consider this change. Simply use www.domainname.com.au/malaysia/ to host content relevant to this market until you can get your TLD. This would send the strongest signal to both search engines and site visitors that your content is targeted for Malaysia.