Sharifah Mariam Alhabshi of International Institute of Public Policy and Management, University of Malaya, Kuala Lumpur finds the use and existence of Cyber Cafés have become quite commonplace in several urban areas of the contemporary world. In case of developing countries, where the new communication technologies have been viewed as a powerful tool to foster development at a faster pace, the governments have been encouraging the use of these technologies across the masses in all possible ways, including Cyber Cafés. A typical example in this context is Malaysia where ICTs (Information Communication Technologies) have been promoted and backed up extensively by the government and the people are also enthusiastic about the new technology. It needs to be remembered, however, that technology can facilitate development on the one hand and can worsen a particular situation or give rise to new issues on the other, which call for attention from the governments as well as the peoples. In Malaysia, the Cyber Café trend begun in 1990s. Over the years, the normal usage (as professed by the government) has gradually dissipated. Cyber cafés have primarily emerged as entertainment hubs. The illicit activities in some of these Cafés pose a cultural threat to the norms of the Malaysian society, especially as these are becoming the centre of life for a number of students. Several government departments and agencies have been trying to improve the situation, with steps such as introduction of new legislation and rules. Strict punitive actions have also been taken, but the ground situation remains critical. Here, the results of a recent survey of Cyber Cafés in Kota Baharu and Kuala Lumpur territories are discussed. The results show that the problem is not entirely because of the users and operators alone, but also due to confusion on part of the authorities. The analysis of the situation in two territories suggests how the situation could be improved despite the present drawbacks. Read more : http://www.iimahd.ernet.in/egov/ifip/april2005/article3.htm