P Chandran was sentenced to death in 2008 after he was found guilty by the Johor Bahru High Court for the murder of K Muthuraman in 2003.
Chandran was convicted for murder charge in 2003 when was 25 years old.
He has been in prison for the past 11 years.
The execution was postponed at the eleventh hour by the prisons department upon the intervention of the Johor Sultan, Online Free Malaysia reported.
Chandran's brother Thamotharan said he believed that the execution was suspended following a clemency appeal made by the family to the Johor Sultan to pardon Chandran.
He also thanked the Indian majority NGO Hindu Rights Action Force (Hindraf) and its chairman P Waythamoorthy, who is also a deputy minister in the PM's Department, for taking this matter up with the government.
Yesterday, Hindraf had appealed to the Attorney-General's Chambers to delay the execution of Chandran.
The Bar Council had also called on the government to stay the execution.