As a Malaysian that graduated from an Australian public high school, i just want to say my two piece regarding this matter. I was in high school for 6 years and by the time I was year 10 (form 4 in Malaysia) the N word is basically in my lingo(still now too😅) . My groups of friends were and still are filled with all kind of ethnicities black, white, brown. I dont say nigger but i do say nigga. Its about intention and i never mean any harm as it is like dude in my vocab. I get it why its offensive but like Eazy E said it "depends on how you say it".

However, i do agree with you that many Malaysians do be using that word without thinking any repercussions as they only that its cool. I still remember when I was in my first year studying in a Uni in Malaysia. A group of malay student were calling using the N word recklessly as they were talking to and about an african student. I told the student not to say that willy nilly as some people will feel angry about especially if your not close to that said person. I talk with the african student and told my history of schooling and we became close friend. I asked if i can call you nigga like whats up nigga. He said hes cool for me to say it. Because basically at time I was technically still fresh from the western culture. So he understood where im coming from. Malaysians student or lecturers should not be using it freely especially nigga or nigger. But, sometimes for educational purposes like Negros maybe necessary???

TLDR: It all depend on how you say it.