Early Childhood Care and Education (ECCE) in Malaysia is catching much more limelight now than in the past. In a country where governance is very centralized, such attention has given rise to more quality preschool classes and initiatives. Comprehensive policies have been developed and implemented, however studies have shown that there are gaps between the aspired and the implemented. Good governance ensures successful implementation of policies. Good governance requires the authority and other stakeholders to focus on the vulnerable population including the indigenous people, children with special needs and refugee. Providing effective dissemination of policies, maintaining a sustainable mechanism of monitoring, attention to coordination and integration are tasks at hand to ensure successful implementation of policies. The ECCE Policy Implementation Review initiated by UNESCO and UNICEF has provided much evidence-based input to tackle these issues. This paper provides a situation analysis of the status of ECCE in Malaysia based on the findings of ECCE Policy Implementation Review.