Knowledge governance is a relatively new discipline in Malaysia with very little research work performed so far. As Malaysian government is actively involved in the implementation of Economic Transformation Program (ETP), Government Transformation Program (GTP) and Urban Trans-formation Program (UTP), Small and Medium Enterprises (SMEs) need to react to the government move by transforming their conventional knowledge management practices to knowledge govern-ance. As of today, there has been very limited study conducted in Malaysia on the extent of the company acceptance of such governance. This research was therefore conducted to measure the SME users' acceptance and identify the pros and cons of knowledge governance. With these findings, recommendations were given to policy makers and industries to increase the company's knowledge governance acceptance. Questionnaire was used for data collection. Systematic random sampling methods was used to select respondents. The questionnaire was developed and adapted based on knowledge management and IT governance frameworks. In this model, the dependent variable was company's intention to adopt knowledge governance. Independent variables included knowledge application needs, knowledge architecture, knowledge infrastructure, knowledge investment and knowledge principles.