The ability of governments to develop and effectively manage knowledge assets is now considered a critical capability for electronic governance. Good Knowledge Management (KM) practices in government are usually driven by clear vision and objectives which are part of KM strategies. Developing such government-wide KM vision and objectives requires inputs from individual government agencies and other stakeholders on their needs and priorities (so-called demand-side). However, while there is significant literature on models and tools for measuring KM capabilities (so-called supply-side) and impact of KM practices, very few scholarly work is available on assessment of specific KM needs of individual agencies or other stakeholders. This paper presents an Integrated KM Assessment Model which measures both the demand and supply sides of KM in government. The model was used for assessing the KM needs and capabilities of government agencies in Macao SAR as part of a study for determining the readiness of government as a whole for KM. Results from our study show that innovation in government operations is considered by agencies to be the most KM demanded area, while KM capability for task-specific activities was found to be the weakest KM capability area. In addition, document-intensive and high-volume transaction agencies, such as educational, financial, electronic data interchange agencies have relatively higher KM awareness and capability.