Myanmar Under-23 team manager, Tin Myint Aung, accepted the defeat against Malaysia Under-23 despite having taken the lead in the first half through Nay Lin Tun.
As well as losing their lead, the Burmese also saw one of their key players, Kyi Lin, dismissed during the last minutes of the game.
Myanmar, who only have one point from two games, will have to beat bottom of the group Singapore Under-23, and hope that Malaysia can beat Thailand Under-23 with a big margin in order for them to be in the top two of the group.
Speaking to the reporters after the game, Tin said: "Both teams did well but Malaysia took their chances in the game."
When asked about the referee in the match, who gave Kyi Lin his marching orders towards the end of the game, Tin refused to say anything about it.
"The referee was amazing. I do not want to talk about him," he added.
With the do-or-die game against Singapore coming up after this, Myanmar will have to do their best without their star performer in order to salvage anything from the competition.
They will be hoping to get the better of Singapore before hosting themagain in the SEA Games at the end of the year.
Myanmar went down to Malaysia for their first defeat of the tournament, after Irfan Fazail and Wan Zack Haikal both scored in the second half to give Malaysia a two-point lead over Thailand and four-point lead over Myanmar.