Davies' team-mate Davide Giugliano has been forced to take a three months break from racing due to a fractured vertebra after his accident at Laguna Seca.
At Laguna Seca in the US on July 19, Davies was in great form winning both races and simply looked the class act the whole weekend.
This weekend the Aruba Ducati rider will have to deal with extremely hot conditions and humidity in Malaysia. In last year's race Davies struggled, getting a fourth and eighth place in the two races.
In the current WSBK standings, Davies is in third place with 263 points behind leader Jonathan Rea on 407 points and Tom Sykes with 282.
In a chat with worldsbk.com, Davies said that despite doing all right last year at Sepang he felt that this year they are more competitive.
"All things considered I think we did a good job last year. The high temperatures were a big issue for us, especially in the races where grip worsened significantly after a few laps.
"We were quite fast for as long as we had tyre life but it wasn't for long enough unfortunately. We are definitely in a better position now and so we should be more competitive, especially considering our recent results.
"The weather may also impact on the practices and races, with the likelihood of thunderstorms almost every day.
"We just have to wait and see but I think we have every reason to be confident," he added.