The purpose of this study is to empirically examine the role of intellectual capital efficiency in creating investment opportunity set (IOS) in 188 Malaysian listed manufacturing companies during the 2006-2011 period. Value Added Intellectual ‎Coefficient (VAIC™) is adopted as the measure of intellectual capital efficiency while factor analysis is used to construct an index of investment opportunity set (IOS) from three price-based growth variables. The fixed effect and GMM system two step models provide statistical evidence that the VAIC and its components have significant positive effect on IOS in manufacturing companies of Malaysia. The positive effect of intellectual capital efficiency on IOS implies that companies can benefit immensely from spending on their human and structural capital because this investment adds value to their companies.