The blade doesn't look like something that is done by Malaysians. The design however is probably a variant of the lawi ayam.
Locals, as far as I know, do know make sheaths with dragons on it.
I suspect this particular knife comes from Indonesia and found its way into Malaysia. The Malay weapons industry is active in parts of Indonesia. They make all kinds of blades based on traditional and ancient weapons.
Those that are meant to be used are simpler and plain. They are simply meant to be used.