Still early days. Talks between both governments haven't even commenced, nor have the Americans been informed. Mention of the possibility of acquiring the Kuwaiti Hornets first surfaced in 2019. A few weeks ago the head of the RMAF said that he would discuss the issue with his counterpart at the Dubai air show. There was no follow on news.
For the RMAF its priority remains the LCAs/LIFTs. If however the Kuwaiti Hornets can be acquired at the right price and if the government can provide adequate operational funds, the RMAF won't object. The tight fisted Malaysian government would also have to allocate funds for ground equipment and ordnance. Certain modifications would also have to be performed on the Kuwaiti Hornets in the event they acrually end up in South East Asia. Akthough a possible deal would involve all 33 airframes probably only 18 would end up in RMAF colours, the rest being used for spares.
As is widely known American approval - involving the Defence Department, State Department and other entities - woukd have to be sought. I don't see any issues but the approval process is a long bureacratic tedious affair.
The Malaysian Deputy Minister of Defence said that Kuwait's 33 Cs and Ds have accumalated less flying hours than Malaysia's 8 Ds. I have no idea how accurate this claim is but from an interview done with a RMAF pilot at Pitch Black we know that RMAF Hornet pilots do about 120-150 hours annually on average [the Flankers do about the same and the Hawks slightly more]. Kuwait's Hornets have reportedly seen action in Yemen but news is scarce.