The World Championships bronze medallists and Commonwealth Games gold-winning pair went down 15-21, 16-21 to the Malaysian fourth seed. In the first round, Jwala-Ashwini had beaten Germany's Anika Dorr and Annika Horbach 21-14, 21-11.
Meanwhile, in the men’s singles event, Anand Pawar won the first game 16-21 but lost the next two 17-21, 6-21 to Ireland’s Scott Ivans in a closely fought contest.
India’s PC Thulasi also lose her women’s singles tie 21-18, 14-21, 14-21 to sixth seed Sashina Vignes Waran of France. Earlier, in the mixed doubles India’s Ashwini and Tarun Kona fought hard before losing to Sweden’s Nico Ruponen and Amanda Hogstrom Ashwini-Kona lost 15-21, 21-19, 17-21.