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"I'm proud of the Malaysia players; they fought until the end," he said after the game in Phu Tho's Viet Tri Stadium.
"Malaysia’s strategy was effective for nearly 120 minutes. The players also gave all they got. It’s hard to accept defeat this way, but we have to look at the fact that Vietnam are the strongest team in this tournament."
Despite having several players just returning from injuries, Malaysia played solidly and took the game into extra time.
In the 111th minute they conceded a goal from Nguyen Tien Linh's header, and could not find an equalizer in the remaining time.
Maloney said: "Malaysia conceded from a mistake by the goalkeeper. Can't blame him because he has just returned from injury. We also didn't have the best lineup for this game. I appreciate Vietnam's strategy but am also satisfied with the performance by Malaysia."
Although failing to make it to the final, Malaysia had a fairly successful tournament, remaining unbeaten in the group stage.
On Sunday they play Indonesia in the bronze medal playoff at the My Dinh National Stadium in Hanoi.
SEA Games: Vietnam 1-0 Malaysia
