The number surpassed the 118,000 evacuated during one of the country's worst floodings in 2014, and disaster officials feared it could rise further as there was no let-up in torrential downpours.
The death toll remained at four recorded across Kelantan, Terengganu and Sarawak.
Kelantan state bore the brunt of the flooding, accounting for 63 percent of the 122,631 people evacuated, according to data from the National Disaster Management Agency.
Nearly 35,000 people were evacuated in Terengganu, with the rest of the displacements reported from seven other states.
Heavy rains, which began early this week, continued to hammer Pasir Puteh town in Kelantan, where people could be seen walking through streets inundated with hip-deep waters.
"My area has been flooded since Wednesday. The water has already reached my house corridor and is just two inches away from coming inside," Pasir Puteh resident and school janitor Zamrah Majid, 59, told AFP.
"Luckily, I moved my two cars to a higher ground before the water level rose."
She said she allowed her grandchildren to play in the water in front of her house because it was still shallow.
"But if the water gets higher, it would be dangerous, I'm afraid they might get swept away," she added.
"I haven't received any assistance yet, whether it's welfare or other kinds of help."
Muhammad Zulkarnain, 27, who is living with his parents in Pasir Puteh, said they were isolated.
"There's no way in or out of for any vehicles to enter my neighbourhood," he told AFP by phone.
"Of course I'm scared... Luckily we have received some assistance from NGOs, they gave us food supplies like biscuits, instant noodles, and eggs."
The Malaysian Meteorological Department warned that heavy rains will continue until Sunday in Kelantan, Terengganu and Perak.
Floods are an annual phenomenon in the Southeast Asian nation of 34 million people due to the northeast monsoon that brings heavy rain from November to March.
Thousands of emergency services personnel have been deployed in flood-prone states along with rescue boats, four-wheel-drive vehicles and helicopters, said Deputy Prime Minister Ahmad Zahid Hamidi, who chairs the National Disaster Management Committee.
