He’s just implying cheap subcontracted labour from a foreign country where labour rates are lower.

There's also a different culture in Asia. In Europe if management tells you to do stupid /unoptimal thing employee can rejoinder.

In Asia they'll just do what they're told to do without questioning. You'll notice this immediately if you work with Asian people. They never discuss decisions with the management.

And as an Indian American[1] friend said the power relation means they do whatever stupid thing they are told to do by management rather throwing shit back.

[1] My friend has complained that managers confuse him with the Indians on a H1B visas and get bent when he tells them their idea is stupid.

It doesn't have to be Malaysia. They are being designed by people who will never use the product.