This paper aims to evaluate the perception of Malaysian facilities management (FM) stakeholders on the importance of innovation in the delivery of FM services. This research adopts an extensive literature review on innovation in the generic business environment and adapts the findings to the FM industry. A large-scale survey with relevant FM stakeholders is conducted and statistically analysed to determine the role of innovation management in delivering FM services within the Malaysian FM industry. The Malaysian FM stakeholderís acknowledged the importance of innovation in delivering effective FM services. The ability of FM service providers and suppliers to demonstrate an innovative approach is also a significant factor in order to win work. The fact that FM in Malaysia is still in its infancy hinders the authors from justifying a truly relevant population of FM stakeholders in Malaysia. Nevertheless, the number of respondents from the survey are considered to be prominent FM stakeholders in the local market since the data were collected from participants who attended the National Asset and Facilities Management Convention (NAFAM) in 2010. There is also limited literature available on the current position of FM in Malaysia. This paper provides a fresh paradigm in understanding the importance of innovation in delivering effective FM services in Malaysia. The Malaysian FM stakeholdersí expectations from their FM service providers are also translated and ranked into types of innovation that is instrumental in the eye of the FM customers. The growth of FM customer-supplier relationship is shifting from being merely on a transactional basis to a strategic partnering relationship by embracing innovation principles in delivering FM services respectively. Literature on FM within the Malaysian perspective is still fairly limited, to which this paper aims to enhance this existing body of knowledge. The input provided by this study will guide the effective implementation of innovation in the delivery of FM services in this emerging Asian market.