Moreover, your assumption that peerage law applies to the Crown is profoundly misplaced, eg, the Crown does not become abeyant. (You might find the constitutional and historical essays published in _The Queen_ [Penguin, 1979] useful in this regard. And although I have no idea whether the British Government prosecutes uncles/aunts-nieces/nephews incest, such unions would not be recognised in Law as marriages.
In contrast, however, the marriage laws of Malaysia specifically allow such unions - for Hindus, only.
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