The Welsh club will sport the 'Malaysia' brand across their playing kit for the 2011/12 campaign and in doing so could have turned away up to £1m in sponsorship revenues.
The Bluebirds are currently backed financially by Malaysian businessmen Tan Sri Vincent Tan and his partner Datuk Chan Tien Ghee, the pair reportedly buying a controlling stake in the Welsh club for £6m.
Speaking about the decision to emblazon 'Malaysia' on the club's shirts, chief executive Gethin Jenkins said that the club wanted to show its bond with the 1Malaysia campaign.
Jenkins said: "The club had some very attractive shirt sponsorship options to link up with a number of commercial partners and brands in the UK and abroad, but after speaking with our investors and knowing the commitment from Vincent Tan and TG, we knew that the best way to highlight our affinity with Malaysia was to wear the message with pride on our kits this season.
"The bond between Cardiff City FC and Malaysia will be evident throughout the season, something that has already been fully embraced by our supporters over the last twelve months and more. We are all looking forward to maximising this sponsorship and further sharing much between both countries over the coming season."
"Features and events on our ever improving links with Malaysia will be run over coming months, highlighting the excellent work being undertaken by our Academy in the country, plus much more."
Cardiff are not the only club to promote a country with their kit sponsorship, Sheffield United promoted Malta's tourism industry with a recent shirt sponsorship deal.