Overall, Malaysia controlled the match, with deft passes to penetrate the Kiwi semi-circle, but the finishing was poor.
New Zealand won the first penalty corner in the fourth minute, off their first foray into the Malaysian semi-circle, but it was well stopped by the runners.
Malaysia's first penalty corner in the 20th minute was a heart-stopper, as Amin Rahim's flick was blocked by goalkeeper Kyle Pontifex, and landed in front of S. Selvaraju, but his shot was also saved.
After the break, Chua Boon Huat made his entry and his impact was almost immediate.
The veteran Boon Huat, with help from Ismail Abu, won Malaysia a penalty corner after the re-start, but the set-piece was well stopped.
Malaysia were finally rewarded for their hard work, when in the 48th minute, a free hit from 25 yards was deflected into goal by Boon Huat and Malaysia were in the driving seat.
But even as the 1,000-plus fans celebrated the goal, New Zealand struck with a Nicholas Wilson field goal and it was back to square one.
Malaysia were flawless for the remainder of the match, and the crowd gave them a standing ovation.
Meanwhile, India survived mediocrity to advance to the final. Sandip Singh gave them the lead in the 28th minute through a penalty stroke but Pakistan pulled level in the 50th minute.
Abbas Haider gave Pakistan the life-line with a field attempt, but Sandip Singh made sure India advanced to the final with another penalty corner goal in the 60th minute.
India will start the final as favourites after having whipped Malaysia 3-0 in the preliminary round.
P W D L F A Pts
INDIA 4 2 2 0 9 5 8
MALAYSIA 4 2 1 1 8 7 7
NEW ZEALAND 4 1 3 0 7 6 6
PAKISTAN 4 1 0 3 9 8 3
EGYPT 4 0 2 2 4 11 2
RESULTS: India 2 Pakistan 1, Malaysia 1 New Zealand 1.
TODAY -- Third-Fourth: Pakistan v New Zealand (4.30pm), Final: Malaysia v India (7pm).