The FA-50 carries an Israeli radar. The Americans are not going to give them a radar for obvious reasons.
Any contract with Malaysia will only be signed after 2022, which means we have a minimum of 3 years to deliver a jet with an Indian AESA radar, which is planned from the second squadron of Mk1A, ie, 2025-26. Uttam will become production ready this year. A lot of the stuff that's considered Israeli is basically Indian IP, like the UEWS.
A major drawback for the Korean option is the engine is underpowered for the Malaysian environment and comes only in a two-seat configuration. And its currently available weapons options are not suitable to counter the Chinese. It is mostly carrying outdated weapons today. Plus no AMRAAM yet, it's still WIP, although it should become available by 2025, when the missile is obsolete.
With the timeframe the Malaysians are working with, they plan to buy 18 jets now and 36 more later, for 3 squadrons. The 36 more could be the LCA Mk2 instead of Mk1A, so that's a very good option to have.
The previous FLIT-LCA RFI drew responses from Boeing (offering its T-7 Red Hawk), South Korea’s KAI (the FA-50), Italy’s Leonardo (M-346 Master), India’s HAL (Tejas Light Combat Aircraft, or LCA), China-Pakistan PAC (JF-17 Thunder), China’s Hongdu (L-15 Falcon), Czech Aero Vodochody (L-39NG), and Russia’s Yakovlev (Yak-130 Mitten).
Compared to all the non-Chinese aircraft in the competition, only LCA is a real fighter jet.
Their main plan is to get 3 squadrons of FLIT-LCAs and 2 squadrons of MRFAs. So it's unlikely they will be happy with a whole bunch of trainers.