As of now, when forming Malaya, you only get claims to provinces (about 2/3rd you already owned in order to form Malaya) plus accepted culture (which is part of your culture group anyway) and nothing else, so there is little incentive to form Malaya (beside pretty colour)...
Other reason why I think Malaya should change your government rank to empire are:
1) It requires you to conquer a lot of lands, more than some nation formation that grant Empire rank do (like Mughal for example)
2) Southeast Asia region doesn't have nation that change government rank to empire yet
3) I am pretty sure the inspiration for Malaya is Srivijaya Empire, so I think it fits to change your government rank to empire once you match the achievement of Srivijaya
Other reason why I think Malaya should change your government rank to empire are:
1) It requires you to conquer a lot of lands, more than some nation formation that grant Empire rank do (like Mughal for example)
2) Southeast Asia region doesn't have nation that change government rank to empire yet
3) I am pretty sure the inspiration for Malaya is Srivijaya Empire, so I think it fits to change your government rank to empire once you match the achievement of Srivijaya
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