Is contract job in Malaysia is better than Permanant Job in India?

Contract job means just that - it will end when the work required under a contract is finished. This is further dictated by the fact that when working overseas a work permit is required which is linked to the job and employer. There is no guarantee that a contract will continue the full length either, if the Offer Letter gives terms for curtailing the agreement. So basically it is a temporary assignment.

The most important matter is to look at the cost of living in Malaysia (expatistan and numbeo are websites) to see how that impacts on the salary offered compared to current COL.

One of the biggest downsides can be Pension related. Some Malaysian companies don't contribute anything and the growth rates can also be different for foreigners. For this reason many foreigners look at their salary level as including possible pension savings.

Thank You Gravita,

In the offer letter it is just mentioned as "We are pleased to offer you the position 'XYZ Designation' with ABC company for a period of 12 months (extendable on mutual agreement) " along with other details like Duties, Compensation & Benefits, Relocation & termination (1 month Notice Period) stating your employment with the company is on an at-will basis, Except in case of termination by the company due to misconduct or non performance the company will provice one month of advance notice of termination employment.