
Pearly-Thinaah, who were competing in their first tournament after a two-month injury layoff, lost 16-21, 19-21 in 37 minutes at the Singapore Indoor Stadium.
It marked their first defeat to the world No 105 Thai duo.
The Malaysian pair were forced to skip several tournaments after Pearly suffered a back injury at the All England Open in March.
Separately, Goh Sze Fei-Nur Izzuddin Rumsani booked their place in the quarter-finals after defeating compatriots Wan Arif Wan Junaidi-Yap Roy King in three games.
The world No 8 pair won 23-21, 16-21, 21-8 in 52 minutes. Sze Fei-Izzuddin have now beaten their fellow Malaysians in all four encounters so far.
They will meet either Daniel Lundgaard-Mads Vestergaard of Denmark or Indonesia’s Fajar Alfian-Shohibul Fikri in their last-eight match tomorrow.