While automatic transmissions were popular in America by the 1950s, and steadily increasing in popularity in Japan, it took a while for such transmissions to displace manual transmissions in Malaysia. Automatic transmissions were not so popular because they affected performance negatively and overshadowed the convenience of not having to change gears manually.
Traffic conditions back then were also not as congested as now with the smaller vehicle population. So motorists may not have found it too troublesome and tiring to have to work the gearbox. Engine outputs were also low so the less impact on performance, the better.

Proton can be thanked for having helped to popularise the automatic transmission when it came out with the Saga 1.5I in 1988. Having the largest reach with its popularity as the bestselling model in Malaysia, the Saga 1.5I with automatic transmission sold in large numbers. Many got to experience automatic shifting for the first time and liked it.
There were also Japanese models sold in Malaysia with automatic transmission in the 1980s (even the Datsun 120Y). But with old technology, they didn’t sell in any meaningful numbers.
In the second half of the 1980s, Toyota developed more efficient automatic transmissions with electronic controls that optimised shifting, enhancing performance. In fact, Toyota introduced the world’s first micro-computer-based automatic transmission with electronic controls as far back as 1981.
New technologies also reduced power losses in the hydraulic drive. The lock-up clutch contributed to this as it created a direct mechanical connection in certain conditions.

This new generation of transmissions went into models like the Toyota Corolla AE92. With increasing popularity of automatic transmissions among Malaysian motorists, the increased efficiency and performance got many hooked on automatics.