Auntie Ah Moi Master

Yes you can pay in lieu of notice, this is very standard in Malaysia. Check your contract, usually it says either party can pay salary in lieu for the shortened period. So if you cut 1 month, you pay 1 month gaji (or your new company pays for you, ask them to buyout). I did this before, negotiated with HR, offered to pay 3 weeks salary and clear my leave balance to offset. They agreed. Put everything in email so got black and white. About bad reference, in Malaysia most companies only confirm dates and position anyway, cannot simply badmouth you.