The Easter Road men have been left with it all to do at home on Thursday after a 2-0 defeat in the first leg of their second-round qualifier in Sweden, a loss that could have been much worse had it not been for some heroics from goalkeeper Ben Williams.
However, Fenlon is optimistic the Scots can still progress against the Swedish league leaders, who are midway through their domestic season.
He said: "It was a tough night, but we knew it was going to be because they're a good team. Their movement was very good, but if we had 15 or 16 games under our belts I think we would have acquitted ourselves a bit better.
"It was good to get the new players their debuts, get them bedded in and get them playing, and also to get some young boys experience of playing in Europe as well.
"I said to them at the end that you can't buy what they got there in relation to training. You can't train at that level and that sharpness.
"Some of our lads were out on their feet at the end but it's worth more than any training session."
First-half goals from Malmo skipper Jiloan Hamad and Magnus Eriksson, just two minutes apart, ensured the Easter Road team were forced to endure a long evening at Swedbank Stadion.