The 56 trainees, 14 men and 42 women all in their early 20s, will study at the University of Otago College of Education before returning home to complete their qualifications and become specialist English teachers.
They will be joined next year by another group of about 60 students, who will remain here until the end of 2012.
The scheme was part of a major push to introduce English as an official second language in primary schools, the students said yesterday.
Malay is the first official language for the country of 24 million people.
In total, about 600 students had government scholarships to study at five overseas universities - Victoria University in Wellington, Auckland University, Macquarie University in Sydney, Queensland University of Technology and Otago.
English was already widely used in schools in urban centres, but the Malaysian Government wanted the language taught throughout the country, Sailaja Jayamani said.
She and her friends been together for two years already, she said.
All had completed foundation studies and the first year of a bachelor of education degree, specialising in teaching English as a second language, at a college in Kuching, East Malaysia.
In Kuching, they lived in a student hostel.
In Dunedin, they are flatting in university-managed flats.
Asked whether they were looking forward to their time here, Ms Jayamani said they were.
"There will be lots of challenges - getting used to a different culture, the weather and the New Zealand accent."
The university's Malaysian Students Association had provided buddies and mentors to help the group settle in, college academic co-ordinator Sharon Young said yesterday.