This study focuses on the performance of SMEs in the ICT sector and the critical success factors (CSF) that could have contributed to such performance. Objective measures were employed to determine the performance SMEs, consisting of number of permanent employees, maximum paid-up capital, average annual sales, annual sales gross profit, assets and liabilities and average percentage market share. Based on these measures, the companies in the sample demonstrated positive trend in business achievement, except for average annual sales and average percentage market share. While average annual sales showed a decline, the average percentage market share was rather static. These two measures are essentially connected where declining sales

Based on the findings of the present study, several recommendations are deemed appropriate for the consideration of the relevant government agencies involved in SME development. From a holistic point of view, the main agenda now is to lever and prepare the SMEs to become world class ICT providers. This is in tandem with the global surge of ICT potentials in future.

Overall, the performance of the SMEs from the ICT sector in the present study was considered fair, although they were one or two individual companies which achieved outstanding success. From the standpoint of the ability to secure market share, SMEs in the ICT sector must be oriented to secure more sales and conscious of the market share and market dominance.

Future researchers should probe into issues which influence development of ICT SMEs. This includes deeper understanding of reasons behind success stories, comparison studies of ICT SMEs in Malaysia and Asia Pacific region, institutional (issues of legality, government and education systems) and cultural implications towards growth of entrepreneurship in the ICT industry, as well as critical success factors to stimulate creativity and innovation in the industry.