In numerous Asian countries, traditional mainstream media have been forced to function as ideological state apparatuses under the tight control of authoritarian regimes. Dissidents can only voice their opinions through so-called "illegal" publications, or "legal" publications with limited circulation. However, because of the widespread use of computers and the Internet, the state can no longer control the marketplace of ideas. This paper analyzes the role and contribution of the Internet in the democratization of Malaysia by challenging the effectiveness of state regulation of the mass media, and promoting pluralism in the public sphere. This study also presents a discussion on how economic and political changes have catalyzed public use of the Internet, and simultaneously prompted the state to launch counterattacks against perceived "threats" of new media.