E-commerce, one of the areas of ICT that interests governments, has received particular attention. It is said that e-commerce is crucial for economic success and gives SMEs a major advantage in the marketplace. Yet, reality seems to be quite different from this rhetoric. This paper explores the extent of e-commerce adoption amongst SMEs in Malaysia that have received government e-commerce grants. It highlights preliminary findings from an exploratory study of 101 websites of funded SMEs. Only 68 of the 101 websites are operational at all. Many SMEs have e-mail and websites, but very few bother with anything more sophisticated. This result is surprising if e-commerce really is so valuable to SMEs. Implications are discussed and some concluding thoughts are made. Keywords Internet, government, e-commerce, SMEs..

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