Yes, you were right. There is no CAT 3 facility in any Malaysian airport. KLIA have CAT 2. One of the main reason Malaysian Airport do not have CAT 3 is the weather condition, as it is near the equator, weather is more influence by the afternoon thunderstorm. On a few occasions, morning fog do come in but will dessipate when the temperature goes up. In economic sense, no point of putting up CAT 3 facility.
What you need is to hold, ie.approx 30 minutes for the weather to clear especially in the case of thunderstorm. It come and go. So, there is no problem of making landing once the weather improve. Some airport may be effected by low cloud during monsoon season, but CAT 1 minima should overcome that. Major problem is the haze (due to open burning by some irresponsible people/nation) which may be so bad that it restrict visibilty well below CAT 1.
In my 5 1/2 years as a commander on 737 in Malaysia, I had one diversion...not bad huh?