Copyright © CC-BY-NC 2020, CRIBFB | AESR American Economic & Social Review; Vol. 6, No. 1; 2020 ISSN 2576-1269E-ISSN 2576-1277 Published by Centre for Research on Islamic Banking & Finance and Business, USA 39 E-Government Development & Digital Economy: Relationship Mohammad Gias Uddin PhD Student Department of Economics and Business University Tunku Abdul Rahman, Malaysia mail: mdgias89@gmail.com Mohin Uddin Lecturer Department of Business Administration International Islamic University Chittagong, Bangladesh E-mail: mohin1uddin2@yahoo.com Abstract The main objective of this examine is to explore the elements that influencing the digital economic system and E-government courting. Commonly, the examiner is to analyze the impact of demographic variables are gender and schooling stage; as well as digital infrastructure, virtual readiness, virtual content material, and offerings on the digital economy in Malaysia. A minimum overall of 384 questionnaires could be disbursed to the goal respondents to collect the sample information. Four hypotheses helping to the developed to survey the particular targets of the examiner. Demographic variables expected to have a high-quality enormous relationship with the virtual financial system. Last however now not least, the findings of the look at shall offer statistics to E-government to understand what factors will affect the virtual economic system. Except, it shall additionally provide useful information for E-government to higher fit their people’s needs. The elements decided to boom high-quality dating among E- government and virtual financial system in Malaysia. Keywords: Digital Economy, E-Government, Digital Infrastructure, Digital Readiness, Digital Content, and Services. 1. Introduction World over past years economic going to traditional base (e.g: Industrial, agriculture) but recent few years world move to digital economy which base on digital technology (EIU) Economist intelligence unit 2010, Agnew 1999 & Tapscott 1999. So recently everywhere in the world technology development and people involved with social media (communication with social media), e- business, the transformation has changed to e-government (Government offering E-government service for the citizen; Karen Mossberger et al 2008; Weill & Woerner, 2013). Digital economic its helps to economic growth research paper shows that (Brynjolfsson & McAfee, 2011). Alongside the advancement of digitalization, an amazing majority of governments have applied e-authorities tasks, even though the volume and scale in their implementation very substantially amongst nations (United international locations, 2012; Nograšek and Vintar, 2014). The sector financial institution (2008) defines e -authorities as using facts technology to improve business tactics and carrier delivery through authorities’ departments and different authorities entities. Dunleavy et al. (2006, p. 467) describe this fashion as “virtual -generation governance”, that is perceived with the aid of many researchers as critical for the emergence of post-New Public control governance (e.g. Cordella and Iannacci, 2010; Margetts and Dunleavy, 2013). The e-government fashion “Offers a possibly unique opportunity to create self -maintaining change, in a vast variety of intently connected technological, organizational, cultural, and social consequences” (Dunleavy et al., 2006, p. 467). In this regard, the character and the consequences of e-government come to be multidimensional and complex. But, to date empirical research supported through sound and hooked up theories to recognize the technique and the transformative effects of digitalization on public management is sparse (Bekkers and Homburg, 2007; Andersen et al., 2010). The literature review of Heeks and Bailur (2007) and Yildiz (2007) find that most of the e-authorities’ fashions within the literature have no strong theoretical grounding. Also, Shareef et al. (2011) locate that modern research tends to deal with special views on this complicated phenomenon in a scattered fashion.