The South Korean led by two with three holes to play but went double bogey-par-double bogey as Fraser sunk a 10-foot effort on 17 and an uphill left to right 15-foot par putt on the last to win the inaugural event by two shots in Kuala Lumpur.
Lee, 22, had begun the final day with a three-shot lead and looked solid for most of his round before his closing struggles as a first tournament win on foreign soil slipped from his grasp.
Fraser gratefully took advantage to end his almost six-year trophy drought after the 37-year-old closed with a final round of three-under-par 68 at the Royal Selangor Golf Club for a 15-under 269 total, two better than Lee (73) and Filipino Miguel Tabuena (68).
(Writing by Patrick Johnston in Singapore; editing by Amlan Chakraborty)
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