Hey, Just to throw my 2cents in I think StreetBu has the answer,check your master cylinder bore size,sounds trivial but it makes a big difference! I've had many vehicles with manual brakes and never had a problem stopping them and a Malibu isn't any different,you have something there mismatched and it's more than likely the MC,also the so called proportioning valve a they call it is actually just a distribution block and a place to hook up a low pressure warning light to let non mechanical/non drivers know they have a brake failure that needs to be addressed,I can remember having a 67 Chev pickup we drove for a while and ended up stripping for parts,4-wheel drum,dual reservoir master cylinder,small one actually( MC that is ) no proportioning valve,
actually I just remembered I've seen it called a combination valve which makes more sense,It had one 1/4" line to the rear brakes,one 3/16" line to a brass tee splitting off to the front drums and it stopped fine till my little brother got drunk and put it in to a creek one night!!
He was ok by the way,truck was pretty much not! But there's no reason in the world why manual brakes won't work on a Malibu!!! Get the right MC ant I bet it'll stop fine! Later,KillerDave