The Harimau Malaya have climbed four spots to 162nd in FIFA's latest world rankings.
Despite playing no official matches since the defeat to Oman last March, Malaysia have benefited from the drop by Chad, Turkmenistan, Kyrgyzstan and Maldives in the standings.
They share the spot with Swaziland.
Other Southeast Asian nations – Thailand (129th), Myanmar (143rd), Timor-Leste (146th), Singapore (154th), Indonesia (155th), Laos (175th), Cambodia (178th) – have also enjoyed a rise up the table.
The Philippines stay at 137th, while Brunei Darussalam have slid down to 184th, becoming the fourth-worst ranked team in Asia.
Vietnam remain the top dog in the region, despite dropping three places to 127th.
The top five teams in Asia are Iran (41st), Japan (52nd), Korea Republic (58th), Australia (63rd) and United Arab Emirates (73rd).
At the top of the world, world champions Germany’s reign continue, while Belgium have replaced Argentina in second.
Malaysia will have the opportunity to improve on their ranking with an upcoming friendly against Hong Kong and two World Cup qualifiers this month.