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Critical National Information Infrastructure (CNII) is crucial to the survivability of a nation. The destruction or disruption of these systems and communication networks would significantly affect the economic strength, image, defense and security, government capabilities to function, and public health and safety. CNII would probably become an attractive target for terrorists as the result of cyber attacks could leave the nation with difficult conditions due to the disruption of critical services. This paper provides an overview on the concept and fundamental elements of cyber terrorism. This paper also highlights the cyber security policy initiatives as a guideline for the development of the policy framework. This paper further recommends the need of policy development addressing the protection of CNII from cyber terrorism activities specifically for Malaysia.