Abstract
This study examines the major barriers that prevent manufacturing companies in Malaysia from adopting e-commerce. The major barriers of e-commerce expansion were security of payment and uncertain nature of legal and regulatory frameworks. Also the empirical findings reveal that doing business over Internet involves high start-up cost. In fact it is costly to set-up business electronically, because so many technological appliances are involved. Computers are quite expensive to buy limited maintenance facility issue to take advantage of EC. This issue is really affecting small businesses. Therefore, in order to attract and motivate the adoption of EC, the government has to support this sector fully by providing bank loans or subsidiaries.
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