At a community-funded school on the second floor of a downtown Kuala Lumpur shop lot, a gaggle of kids of six or seven years old in smart blue and white uniforms chatter away in excellent English that's better than I'd expect from most Malaysian university graduates.

They are members of the Chin community, a Myanmar ethnic group from a state that was long enmeshed in a civil war with the country's central government.

A teacher explains that all classes are taught in English. But then the Chin aren't intending on returning to Myanmar. Instead, they are pinning their hopes on being resettled to third countries such as the U.S., Canada or Australia.

The chances of that happening have dwindled in recent years. Out of 160,000 refugees and asylum seekers registered with the UNHCR in Malaysia, only a couple of thousand have been resettled this year. Nearly half of all UNHCR cardholders in Malaysia are Rohingya Muslims.

"Globally, the number of resettlement places has come down considerably. The number of places globally is much reduced," UNHCR's country representative Richard Towle told CGTN.

"As a global organization we have to start prioritizing those who are astutely vulnerable in the places and are no longer able to remain there safely," he said.

The Chin have been able to remain in Malaysia safely, if uncomfortably, for years, even decades now. Malaysia isn't a signatory to the UN refugee convention, so technically refugees and asylum seekers are not allowed to work legally, leaving them prone to exploitation. They also have to send their kids to self- or NGO-funded schools.

But over the next year, the status of the 27,000-odd Chin refugees and asylum seekers will become even more uncertain. The UNHCR says that after the end of 2019 they will no longer be considered as refugees.

"That decision and assessment are based on the evolving and broadly positive conditions in Myanmar in Chin state for the Chin people," Towle said. "So it's a positive story that the situation is actually improving for some people who for many years have been refugees."

Community leaders like Mung Khat at the Alliance of Chin Refugees disagree.

"There is conflict and even the so-called peace conference is not smooth enough and there is no power sharing from the military so we cannot say our country is safe and even the Chin state is safe," Khat said.

He said the news that the Chin will lose their refugee status is throwing the community into turmoil.

"It is very stressful news and also we, the refugees, have constantly stressful life here in Malaysia so this is shock news… we even had three suicide cases recently."

The UNHCR's Towle is adamant that while some individual Chin might be able to prove they are still entitled to refugee status after their cases have been assessed, the community as a whole will lose that protection.

He says their options are to return to Myanmar, seek resettlement in a third country or for Malaysia to integrate them into the local workforce – something the six-month-old Pakatan Harapan government pledged to do in its election manifesto but has yet to act on.

"We will continue to pay very close attention to their welfare and their well-being. We are concerned about families and children and making sure that they are not at risk but at the end of the day, the community needs to understand that refugee protection is not forever. It was never intended in that way," Towle said.

The Chin community say they are not going to give up.

They say that the Myanmar government has yet to make any official statement to welcome them back or to grant an amnesty for those who fled.

"We find it very hard to accept this (loss of refugee status) so we keep fighting even in the policy level and the third-country level. We will do advocacy and at the same time we will draw some attention to UNHCR."

When they lose their refugee or asylum-seeker status, the Chin will technically be viewed as no different from the couple of million undocumented migrants – or illegal immigrants, as the authorities see them. And that means they could be subject to detention and deportation.

Towle acknowledges Chin organizations have done a fine job of lobbying for their cause and gaining media attention. But he urges them to "move beyond the rhetoric," as he puts it, and work with UNHCR to find a humane solution.

Back at the Chin school, young children sweep up their classrooms, take out the rubbish and wash the dishes. They are obviously being taught a commendable work ethic as well as English-language skills that would be an asset to any country willing to offer them sanctuary, including their current reluctant host, Malaysia.