Digital Earth, a virtual geospatial data infrastructure, has become a strategic asset to Malaysia in embracing the new economy. Earth Observation Satellite (EOS) is currently a major tool deployed to build and maintain DE. Acknowledging the strategic need of having her own capability, Malaysia has embarked into EOS development programs since the early 1990s, starting with TiungSAT-1, a micro-satellite carrying a small camera, followed by RazakSAT, asmallsatellitecarryinga2.5mPANmedium-aperture-camera. The current satellite development program, the RazakSAT-2, plans to carry a 1.0m high-resolution PAN camera and a 4.0m MScamera, which would become a strategic initiative by the Government in developing and accelerating the nation’s capability in the area of satellite technology, and its applications. This paper aims to review the implementation of a national DE and to discuss the country’s space sectordevelopmentinsupportoftheDEimplementationsviatheproposedNationalSpacePolicy.Emphasis is placed on the EOS program, as described in the policy paper, as well as on supporting the local space industry. The paper concludes by identifying several related issues of importance, their impact, and finally, propose techniques to address these issues.