Since the early 1990s the government has emphasised the information and communication technology (ICT) sector as a new engine of growth and development. The Multimedia Super Corridor (MSC) which was developed in 1996 was regarded as a main vehichle and catalyst for ICT sector development. Since there were many new institutions established by the government, it some how had complicated and decreased efficiency in expanding the industry. ICT related courses at public and private institutions were not developed well enough to meet the market demand. Consequently, the human factor, which was a major component for ICT development, was not fully utilised in research and development, therefore reliance on foreign technology remained a critical issue. These have slowed the progress of ICT development. This paper will discuss the ICT sector development policy in a broad view and try to analyse critically to what extent the development of ICT sector has contributed to economic development in Malaysia.