INTRODUCTION
Development of human resource in terms of mentality and intellectual capital is one of aimed areas under Ninth Malaysia Plan in Malaysia. To enhance the core competence, Malaysia has to convert from labor-intensive goods production to utilization of human knowledge and skills. Research by Tan (2000) found that only few companies listed in Bursa Malaysia reports intangible assets and a small percent of total assets of these companies disclosed intangibles other than goodwill. Thereby, it is aimed to enhance that Malaysian companies should voluntarily disclose intellectual capital in their financial statements. This research measures to the scope length of intellectual capital disclosure and the connection between intellectual capital and corporate governance variables among Malaysian listed companies after the revision of Malaysian Corporate Code of Governance on 2007.Key amendments emphasized to the Code are based on fortifying board of directors and audit committee functions, qualification criteria for appointment, boards composition, frequency of meetings and necessity for continuos training. The code requirements enables shareholders to assess the annual report more transparently.
Intellectual Capital DIsclosure
Intellectual capital are intangible assets that provides value to a firm`s core competence and it consists of three components namely, tacit knowledge and innovativeness of employees, infrastructure of human capital and external relationship of the firm. It is the key to business success in knowledge era as it help organizations to formulate their strategies, assess strategy executions, assist in diversification and expansion decisions, used as a basis for compensations and to communicate measures to external stakeholders. Three approaches in measurement of intellectual capital suggested by Brennan is employment of existing value-based