I won't be so fast to point fingers at the organizers, as China's Ba Yi team has performed regularly at the expo ,as does the Blue Angles . Whereas Malaysia-Indian relationships are not to the point where Malaysia would favour one side over the other. Nor would India has the leverage to do so.
Simply raising the possibility it is to the other posters, not pointing fingers at all. We know JF-17's role in LIMA is not because it isn't able to perform or perform against Tejas since there are plenty of airshows where JF-17 demonstrated equal if not better physical performance than Tejas. So why would it be afraid to perform a flight? Why would it be afraid to perform before, after, or alongside Tejas? Even if Tejas has marginally better sustained turn rates or whatever rate, no spectator crowd can tell the difference and that is but one small relatively insignificant factor in determining export success.
So given the above, I offered one speculation, a decision by any or agreed to by all of the stakeholders. Perhaps they don't want to show a Block 2 perform and would rather be showing the decision makers the Block 2's abilities in not so public ways. Perhaps even asking them to wait for an opportunity to show Block 3s when they are ready. I mean every possible Airforce that is even remotely interested in JF-17 has seen all the videos and probably had representatives watch it perform on all those other airshows. They can directly get involved in discussions and more comprehensive demonstrations with CAC and PAC. So performing at airshows is only for public consumption since it has been close to a decade since its been shown to the world. Therefore it's possible PAF sees no advantage or benefit in doing any flight and risking a pilot while India may make some moves given the last few months.
This has nothing to do with relationships and who has performed and who is not "in" with this group or frowned upon. That's not what I suggested at all. They won't discriminate against any group and there's no reason to. Any avoidance of performance by JF17 operator PAF is not because it has been discriminated against and prevented, or because they are somehow afraid of performing or that they are afraid of being compared to Tejas which is not an impressive performer. So the more likely reasons are in the direction of the speculation listed above.
On the topic of RMAF tender, if there is indeed one where they will be making purchases (as opposed to talking about it and window shopping for years/decades), JF-17 should have a better chance against Tejas unless IAF inducts Tejas in numbers, proves usability and service rates, and offers a good economical and political deal. If the intention is to go with a fighter of this size/class, they also have Gripen to look at albeit a different priced machine altogether. Tejas is about Gripen's price as well let's not forget. If JF-17 Block 3 comes with a well executed AESA that performs to spec, there is no chance any other in this class can compete. Only political favour will shift decisions towards Gripen in that case.