First of all, this is only my opinion based on input from my senses (what i see, read, think, etc..)
I can see two type of Islam in Malaysia nowadays, 'religion' and Way-Of-Life. What majority of us in Malaysia practices is Islam the religion. What it means is that it is a ritual (what you do occasionally), such as going to Jumaat prayer once a week (much like Christian's Sunday church) or full-covering of 'Aurat' while at the mosque/praying.
I'm not saying it is wrong, but it is not right enough.
Take Jumaat prayer (solat Jumaat) for instance. It is good that the mosque is full at the time, but what happen to other 48 times of the prayer (a week's prayer) ? 5 times a day, not once per week (some are even better, once or twice per year). Subuh, Zuhur, Asar, Magrib and Isyak are no less important than Jumaat, so why is the mosque are not as full?
The former might not be so obvious, so let's take something everyone can see everyday. Aurat.
Women's hair to be more specific. It is stated in the Quran (by the way, should be our main source, not some law written by Reid) that every part of a women's body should be covered, except the face and palm. Trust me, ask any Muslim women, they will admit it (some may say 'Yes, but...').
But when they are praying, they willingly follow the Quran. After that, all is off. As if, Almighty Allah can only see them when they pray, and then they somehow become invisible to Allah after the prayer. Why is this?
The answer lies in the mindset. They regards Islam as a religion, something that needs to be done when the time comes, then they are free.. It is known as Secular (religion & life/state must be separated). yes, we might have been declare as Islamic country, but whose law are we abiding? Does our society mimics those form Ottoman empire or the West? Do we put knowledge above all?
Only a handful left regards Islam as a way of life. Yes, it is hard, but nobody said it would be easy. Look at Rasullullah when he is still in his 1st 10 years living in Makkah as the Messenger of Allah, does his life easy or hard?
At the very least we can do, try to improve ourselves by regarding Islam as a way of life, not something you do when its Friday afternoon or 1st of Syawal.