I will answer both questions at once.
Lawyer to Malaysian ratio now is 1:1600 as of 2016 approximately. If you compare this to other profession, nope, lawyers are not in excess but it has increased substantially if you compare to 10 years ago per se. For reference doctor to population ratio is 1:500, that is called excessive but ultimately every field face the same problem, but what makes you unique is the quality of service you provide. I.E: Are you good at what you doing?

Legal profession is unappealing when you start off, but it can be rewarding like i say depend on how you perform, how you carry yourselves in the public. By the way if you are taking a law degree only without having the intention to become a practitioner, I suggest not to do so because you will be wasting money and time. To answer your question more specifically I think that litigation lawyers in Malaysia is always needed. However, corporate, conveyancing, IP lawyers etc would gradually be weeded out. So the very notion of "appealness" would differs on what field you are practicing