Purpose This study aims to examine the impact of foundational competencies on work engagement in the context of the Malaysian small and medium enterprises (SMEs) service sector. Design/methodology/approach This is a cross-sectional study conducted in Malaysia, and data were gathered via a survey on 312 employees representing SMEs service sectors. Partial least squares techniques were used in testing the hypothesized linkages. Findings The findings indicated that foundational competencies have a significant positive effect on work engagement. Research limitations/implications Considering the research approach, generalizing the findings of this study must be done with caution. Longitudinal data are recommended, as these could provide additional support to the results. Further studies can as well extend the framework by testing whether job resources play a positive role in enhancing the relationship between foundational competencies and work engagement in Malaysia. Practical implications The findings suggest that foundational competencies positively relate to work engagement. Therefore, training and coaching sessions could be organized by managers/policy makers to enhance these competencies, which will strengthen work engagement and career development of the employee; it may specifically be very helpful for fresh graduates whose careers would have just started. Originality/value To the authors’ knowledge, this is the first attempt to examine the effect of American Society of Training and Development foundational competencies on work engagement in SMEs in Malaysia.