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The quest to improve the government service delivery is becoming an important agenda for most governments. Information and Communication Technology (ICT) and the Internet in particular have opened new possibilities for the government and the governed, just as it has for the businesses and its customers. Governments of both developed and developing countries have embraced ICT to improve the quality of public service, increase public access to information and to energize more participation in civic affairs. This case study examines the overall implementation of the e-Government initiative in Malaysia, with specific emphasis on the electronic procurement project, also known as e-Perolehan. The general consensus amongst both the buyer and seller communities is that e-procurement will become a catalyst towards a new and innovative supply chain management process within our public sector. It is envisioned that within the next three to five years, more suppliers will grab the opportunity and benefit fully from the e-procurement initiative in Malaysia. Findings from our factor analysis and correlations indicate that organizational, environmental, and technological factors influence the adoption of e-Perolehan in Malaysia.