According to police chief Datuk Seri Mansor Lazim, the two attackers had waited for al-Batsh in front of a residential building in Setapak district for nearly 20 minutes, and fired at least 10 bullets, four of which instantly killed him.
Two unidentified men on a motorbike fired at least eight shots at the man, the Kuala Lumpur police said.
The Batsh family urged Malaysian authorities to investigate his murder and "arrest those responsible for killing him before they flee".
Both Hamas, which controls the Gaza Strip, and Islamic Jihad claimed Batash as a member.
Al-Batsh's father told Al Jazeera that he accuses Israel's intelligence agency, Mossad, of being behind his son's killing and called on the Malaysian authorities to look into who carried out the "assassination" as soon as possible.
Hamas also released a statement mourning his death.
Mahmoud Abdel Rauf al-Mabhouh, a senior Hamas military commander and one of the founders of the Qassam Brigades, was assassinated by Mossad agents at Al Bustan Rotana hotel in Dubai, the United Arab Emirates, on January 19, 2010.
"The lecturer, a permanent resident of that country, is believed to have become a liability for a country hostile to Palestine", he said.
The hitman-style slaying of Palestinian Dr Fadi Albatsh early today sent foreign media organisations into a frenzy as they made it the top story the world over.
A revered engineer, Fadi was granted with a number of prestigious scientific awards, including the highest level award in the 2016 Malaysian treasury.
Batsh specialised in electrical and electronic engineering and worked at a Malaysian university.
Batsh was heading to a mosque for dawn prayers, and had been reportedly living in Malaysia for 10 years.
"I visited the site of the attack".
Israel's use of live fire has drawn worldwide criticism but the Israeli government says it is protecting its borders and takes such action when protesters come too close to the border fence.
He was scheduled to travel to Turkey on Sunday for an global conference on energy, the Palestinian ambassador to Malaysia was quoted as saying by local media, adding that he "was a kind, friendly and a quiet person, he mixed well with everyone". "The Israeli Mossad stood behind the assassination of educated people and intellectuals because Israel knows Palestine will be liberated by scientists".