E-commerce tends to be diffused across the economy, which leads to a wider and more competitive environment in comparison to the traditional economy. In relation to this, government (through E-government) can significantly influence the environment in which the business sector operates and provides the necessary institutional framework to make the overall economy more helpful for E-commerce activities. The Electronic Government initiative was launched to lead the country into the Information Age. It will improve how the government operates internally, as well as how it delivers services to the people of Malaysia. It seeks to improve the convenience, accessibility and quality of interactions with citizens and businesses. As the challenges arising from the implementation of E-government are extensive, the MSC have a huge technology park that is considered crucial for Malaysia to achieve a knowledge-based economy.

The development of MSC is a necessity as the new engine of economic growth to ensure Malaysia is moving in the right direction in implementation the IT revolution. The vision of Electronic Government focuses on effectively and efficiently delivering services from the government to the people of Malaysia, enabling the government to become more responsive to the needs of its citizens. The 7 pilot projects of the Electronic Government Flagship Application are as follows;
1. Project Monitoring System (SPP II)
2. Human Resource Management Information System (HRMIS)
3. Generic Office Environment (GOE)
4. Electronic Procurement (EP)
5. Electronic Services (E-Services)
6. Electronic Labour Exchange (ELX)
7. E-Syariah

The Malaysian Model of E-government Development