Rapid and drastic changes in economic growth nowadays are creating higher demands for employability skills in the workforce. Labour market becoming more competitive and depends on quality of knowledge and skills as the globalization come across in all industry. The employers have high expectations on fresh engineering graduates to perform in their organisation as soon as they are hired. Engineering employability skills are therefore necessary for Malaysia to remain competitive in global market. The study identified the perception and the expectation of employers on skills owned by engineering graduates in their work place. The finding indicates that the majority of those companies employing graduates have been satisfy with the knowledge and skills of the graduates they recruit. They expected for new engineers are very important to be equipped with relevant employability skills and abilities. Employers’ expectation and perception play an important role in determining the employability skills needed.