Intellectual capital is gradually being recognised as a significant element of company value. Thus, information on intellectual capital is important in decision making both within the company and for external stakeholders. The purpose of this study is to determine the relationship between intellectual capital and the financial performance of companies in trading-service sector in Malaysia. This sector was chosen for the study since it has become one of the important sectors that drove the Malaysian economy. A total of 250 observation sample from 50 companies were used as sample of study. This study used the secondary data that were extracted from the annual reports of the companies from 2013 and 2017. The efficiency of the intellectual capital components was calculated by using the Pulic’s Value Added Intellectual Capital (VAIC) method while the company’s performance was measured based on its profitability value which was the return on assets (ROA). The results indicated that the financial performances of companies in trading-service sector were influenced by the proper management of intellectual capital. Hence, the outcome reveals a significant connotation between human capital and structural capital towards the financial performance of companies in trading-service sector. However, on the other hand, the presence of relational capital is positively portrayed but insignificantly associated with the company’s financial performance. The outcome of this study also reveals that human capital has the strongest influence on the financials’ performance of the company in trading-service sector
