Towards Digital Economy: The Development of ICT and E-Commerce in Malaysia

Information and communication technologies (ICT) are one of the important determinants for the rapid growth
of E-Commerce transactions all over the world. The upshot of ICT and the initiative by Malaysian government
flourish online businesses in the country. The aim of this paper is to show the potential growth of ICT and the
development of E-Commerce in Malaysia. The impact of internet usage, internet disclosure, internet experience
and the improvement of ICT have positive implications for the information technology (IT) infrastructure and for
the E-Commerce development in the country. Finding shows that the behavior of internet users for purchasing
online is changing through the growth of ICT and IT infrastructure. The increasing rate of internet users, online spending and adopting of new technologies are the key drivers for the development of E-Commerce in Malaysia.
Government initiatives for the development of IT infrastructure and E-Commerce have shown a positive
feedback from the businesses all over the country. This study may enable the decision makers of the developing
countries to adopt the initiatives and steps of the Malaysian government as a role model for the development of
E-Commerce and knowledge base economy. This paper also provides the background of the ICT dependency, its
influence on purchase intentions and the development of E-Commerce in Malaysia.