Malaysia closed down 0.3 percent at 907.43 but notched a 14 percent rise in 2004.
Indonesia, the top Asian market this year, the Philippines and Thailand, the region's second-biggest loser, were closed for the new year holiday. Markets in the region will reopen on Monday, but only on Tuesday in Thailand.
Among top gainers in Singapore were high-yielding land transport firm ComfortDelgro, up 3.3 percent, and cellular firm MobileOne, up 1.1 percent.
Dealers said with economic growth expected to be slower in 2005, hopes of capital gains were low and investors were more interested in shares of companies that have a track record of paying high dividends.
ComfortDelgro's dividend yield for 2004 is estimated at 4.7 percent and at 5.0 percent for 2005, when the index is likely to yield 3.4 percent, according to Reuters Estimates. MobileOne's yield is forecast at 5.7 percent for 2004 and 6.1 percent for 2005.In Malaysia, a 0.9 percent fall in blue chip Telekom Malaysia, the most valuable phone firm in Malaysia, and a similar decline in power firm Tenega Nasional weighed on the main index.
Malaysia International Shipping Corp rose 1.3 percent on hopes of a larger dividend after the firm raised $740 million from the sale of 32 bulk carriers last month.
Dealers in Kuala Lumpur said they expected market activity to pick up ahead of the February 9 Chinese New Year break.
"We are not expecting much in the first few days but we expect the market to move towards 940 to 960 points in the Chinese New Year rally," said Mayban Securities' technical analyst Heddy Humaizi Hussain.
He said blue chips such as Telekom Malaysia and Tenaga Nasional may bounce back. Medium cap property stocks like SP Setia and MK Land Holdings, as well as plantation stock IOI Corp, would also gain, he said.