By ESPNSTAR.com staff
Both sides entered the game having already qualified for the semi-finals, after beating Laos U-21 in their respective opening matches.
However, it was Ong Kim Swee's side who got off to the brighter start and took the lead after six minutes through Syahrul Azwari, who went on to double his tally ten minutes later.
Sydney's chances of victory then took a real blow just before the break when Roberto Speranza picked up his second booking, and it was 3-0 in the 76th minute when Ahmad Hazwan netted from close range after Anthony Bouzanis spilled a long-range strike from Thamil Arasu.
Still, the Sky Blues refused to give in and hit back two minutes later through a great strike from Christopher Naumoff, before threatening to pull off an unlikely comeback when Peter Triantis made it 3-2 with a sublime freekick in the 80th minute.
Nonetheless, Malaysia were not to be denied and went on to wrap up the win five minutes from time when Irfan Fazail found space inside the area and fired in a shot that crept in despite Bouzanis' best efforts.
Next up for the Young Tigers will be Thailand U-21, who had to settle for the runners-up spot in Group A following a 2-0 defeat to the Vietnam Youth Newspaper Team, who will meet Sydney in the other last-four clash.
Wednesday's Youth Newspaper Cup Results
Vietnam Youth Newspaper Team 2-0 Thailand U-21
Malaysia U-21 4-2 Sydney FC