No, it's not honourable, but that's the way things work. You can not keep 600+ vehicles just to "honour" each of them appropriately. A few will go into museums, some will end up as gate guards in the Army camps, maybe one or the other will be sold to a private buyer but the bulk of them will be hard targets on the ranges or go to the scrap yard. The PT-91M crews are thirsting to punch some holes into metal, that's for sure.
Of course there's still the possibility to sell them to some poor 3rd world nation, but I don't think Malaysia will be even trying to do that.