Problem and barrier of e-commerce in Malaysia Malaysian consumers are increasingly venturing online. Increasing urbanization and changing lifestyles of the urban Malaysians have contributed to this phenomenon. Malaysia is expected to lead growth in Internet in Asia [10]. Internet has created enormous change in the business environment. Systems are devised to facilitate Business-to-Business (B2B), Business-to-Customer (B2C), Business-to-Government (B2G), and Government-to-Citizen (G2C) and so on. Private communication networks and the internet are being increasingly used by organisations to establish corporate alliances with suppliers, business partners and customers. Even though e-commerce is spreading worldwide, many customers are still reluctant to deal with it because of the security and privacy concerns [1]. While the internet helps make our lives richer and more convenient, it also provides a gateway to access our personal information. Many consumers feel that their personal information may be disclosed to others without their knowledge. Furthermore, viruses, hackers, crackers and worms have become the stuff of headlines with results that range from mere headache to a complete disaster. It is generally recognised that security measures are extremely important for e-commerce and all e businesses running on the internet.