Luqman Hakim Shamsudin got the Malaysians on their way in the 36th minute when he got in behind the opposition defence down the left, expertly cutting inside a recovering defender to improve his angle before his low drive was deflected past a hapless Keo-Oudone Souvannasangso.
Two minutes before halftime, Syahir Bashah doubled Malaysia's lead as he cleverly created space for himself on the edge of the box and proceeding to bend a 20-yard effort beyond Keo-Oudone's despairing dive and just inside the post.
Luqman then struck again in the 68th minute to put the result beyond doubt, although the Laotians did manage a consolation with five minutes remaining through a Phithack Kongmathilath effort.
The result, coupled with their opening-day 2-1 triumph over record 16-time gold medallists Thailand, means Malaysia now sit top of Group B with a two-point lead over Singapore -- who have played a game more -- while the Thais and Cambodia are a further point adrift.
Malaysia can potentially secure their place in the semifinals with a game to spare on Saturday against fierce rivals Singapore, while Laos will not be in action with the other Group B tie seeing Cambodia take on Thailand.