Singapore and Malaysia, where PayPal have centers, have these anti-gay laws, but they're a remnant of colonial British law. Remember that anti-sodomy laws were finally struck-down in 14 states by The USA's Supreme court way back in the dark ages of 2003! "Oh well we got rids of those laws
a full 12 years ago, you savages" doesn't really fly.
Those laws are basically never enforced in Singapore whatsoever, rendering the point entirely moot. Nobody is crying out about gays jailed in Singapore because it basically never happens. There was one possible case of a guy jailed for 1 year, but in that case he was charged with infecting the other person with HIV, which he already knew he had and didn't tell the other person. No other charges were even leveled against him, basically showing that they turn a blind eye to those obsolete laws.
In Malaysia they do have a history of arresting transgender people. But that law was
struck down by their version of the Supreme Court in 2014, not long after PayPal arrived in Malaysia. And the number of people in prison on the anti-gay laws is basically non-existent. This study of all anti-gay laws worldwide could only find
1 person in Malaysia held under those laws. And I'm pretty sure that one guy is Anwar Ibrahim, who was an upcoming political leader who had a falling-out with the president, and was arrested on what appear to be fake charges to defame him and remove him from power. I can find numerous references to people arrested under the laws (i.e. police harassment), but zero references to people actually in court over the charges, or sentenced over the charges. So, basically it looks like the police use the laws to generally harass people (which police will do even without laws) but those charges hardly ever escalate to an actual court case.
So, what's PayPal supposed to protest here, about the mere
existence of these laws which never get enforced? The same laws were widespread in the USA until 2003. Adding new discriminatory laws is a different kettle of fish to the mere existence of obsolete laws that nobody really uses.