This would have been a ferrari 1-2 weekend if they didn't have engine issues. That's how quick they have been. Worryingly for Mercedes, that's Singapore and now Malaysia (back to back race) where Ferrari have been mighty.
Merc have switched development to the 2018 car. Ferrari are pressing on with updates to the 2017 car quite aggressively. That will compromise their car development for 2018. Even though the rules aren't changing that much next year.