Malaysia's first half goalkeeper Kumar Subramiam produced one superb save from a fierce Kane Russell drag flick before halftime but no matter the amount of pressure the Black Sticks were unable to cash in.
That came after Malaysia had unexpectedly taken the lead through a penalty corner of their own. Noted drag flicker Sharil Saabah produced a searing drive at the start of the third quarter which tore past goalkeeper Richard Joyce.
New Zealand left it late to draw level. Nifty stickwork got the ball into the Malaysian circle and Panchia was on hand to drive it in from close range.
New Zealand had a host of players returning to the squad who contested the inaugural Trans-Tasman Trophy in Auckland last week, which culminated in the first win over Australia in New Zealand since 1967.
It is a regrouping time for the Black Sticks after the disappointment of the Rio Olympics, when they were bundled out in the quarter-finals by a late flurry of goals by Germany.
They next play world No 1 Australia tomorrow followed by world No 6 India on Saturday night before Sunday's finals day.
One of the key points for coach Colin Batch will be seeing the progress in the next two matches on tonight's effort, which had plenty of hustle but precious little real quality in the attacking circle.