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One neighbour, who also did not want to be named, said Mr Dalton was "a bright, very self motivated" man whom she nicknamed "Dr Biscuit" because of his ginger hair and medicine degree.
had not lived at home for a number of years.
"We are all so shocked and saddened by this.
Newcastle University students Neil Dalton and Aidan Brunger, Adidas Neo Shoes High Tops For Girls
The Foreign Office said it was aware of the deaths and was providing consular assistance to the men's families.
"I've been here for 13 years and the family were here before me."
She said: "We heard this morning about the tragic death of two of our students who were working out in east Malaysia.
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The man, who did not want to be named, said: "It's sad news. He liked his musical instruments a lot. He was in a band I think. I used to hear them playing in the house.
"Aidan was aspiring to do some medical research on his return, Neil was going straight into his final year and it's such a tragic thing to occur."
The Malaysian state news agency Bernama reported that the attack happened at 4.15am in the Jalan Padungan area of Kuching in Sarawak province, in the west of the Malaysian part of Borneo.
"Neil Dalton and Aidan Brunger, both 22, were on a six week work placement, along with five other medical students, to put the skills they had learnt during their time here at the university into practice.
both 22, were on the Malaysian part of the island on attachment to a hospital in Kuching, the university's acting vice chancellor, Professor Tony Stevenson, said.
Mr Dalton's family declined to speak to reporters today as friends and relatives gathered at their home in Ambergate, Derbyshire.
Mr Chung said the Britons had been due to finish their training at the local hospital on Friday and four suspects are in custody.
The suspects followed the students when they left a pub and attacked them after pursuing them in a car, Malaysia's The Star newspaper reported.
"It's just such a shock. He Adidas Los Angeles Grey Pink was just a totally nice guy."
"I think he'd always wanted to do medicine. He was always studying.
Another neighbour said Mr Dalton Adidas Originals For Kids
"They were doing what thousands of medical students do every year, they were on an elective to experience clinical practice in a different setting, to learn from that and enhance their practice when they came back.
Prof Stevenson said in a statement: "We were informed this morning of the very sad news that two of our fourth year medical students working at a hospital in Kuching, Borneo, have been tragically killed.
The 50 year old woman, whose daughter went to school with him in Belper, Derbyshire, said: "I'm totally shocked at the news. He was just a lovely boy. Totally self motivated. Always jogging and studying.
"I used to call him Mr Biscuit because of his ginger hair. When he went off to do medicine I called him Dr Biscuit.
"Him and his mates even made sure I got back home one night by walking with me."
´╗┐British students murdered in Borneo Express Star
"This has come as a huge shock to us all. Our thoughts are with their families and friends at this very difficult time.
Reports from the island claim the Britons were attacked and killed in the street by a gang of four local men after a row in a bar in Kuching early this morning.
Jane Calvert, Dean of Undergraduate Studies for Newcastle University Medical School, said the fourth year students were "excellent" and "highly committed" and were both doing well in their studies.
Sarawak deputy police commissioner Datuk Dr Chai Khin Chung told the agency that the fight broke out after an argument in a bar over the students being too noisy.
"He wasn't gregarious, just a fun, genuine guy," she added.
"They were excellent students, they were doing really well with their studies, they were highly committed and coming back next year to work as doctors.
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