Saina and Srikanth's qualification for the Tokyo Games hinged on the Kuala Lumpur event followed by the Singapore Open (June 1-6).
The former national coach added it will be very tough for Saina Nehwal to make it to Tokyo given her recent results.
The Indian women's duo of Ashwini Ponnappa and N Sikki Reddy and men's doubles pair of Satwiksairaj Rankireddy and Chirag Shetty progressed to the second round with straight game wins.
The Chinese, Koreans and Chinese Taipei shuttler have decided not to compete in the Super 1000 event as it is not part of the Tokyo Olympic qualification period, while the injured Carolina Marin has opted out.
Former champion Kidambi Srikanth, however, couldn't cross the semifinal stage as he went down 13-21, 19-21 to top seed and former world champion Viktor Axelsen.
World No. 10 Satwiksairaj Rankireddy and Chirag Shetty also entered the semifinals of the super 300 event.
Indian mixed doubles pair of Satwiksairaj Rankireddy and Ashwini Ponnappa also progressed to the quarterfinals.
Sourabh Verma and Ajay Jayaram also entered the round of 16.
Sindhu, the Olympic silver medallist, notched up a 21-18 21-15 win over world No. 13 Pornpawee Chochuwong in her third and final match.
While Srikanth lost 21-19, 9-21, 19-21 to Wang Tzu Wei of Chinese Taipei, Sindhu suffered an 18-21, 13-21 loss to Thailand's Ratchanok Intanon.