Journal of Finance, Accounting and Management, 2(2), 23-38, July 2011 23 Strategic Management Accounting Practice In Malaysia: Case of Manufacturing Sector Nik Hasfizul Nik Hassan Universiti Sains Malaysia hasfizul@yahoo.com Nik Maheran Nik Muhammad Universiti Teknologi Mara, Kelantan, Malaysia nmaheran@gmail.com Zurina Ismail Universiti Teknology Mara, Kelantan. Malaysia reen975@yahoo.com Abstract Organizations have changed their accounting strategy from traditional approach to the recent practice of using Strategic Management Accounting (SMA) practice. This is due to the fact that in today‟s business environment, many organizations encounters various challenges that require them to adept effectively in order to remain competitive. The traditional management accounting techniques, which emphasized on the historical data, are questionable in terms of its relevancy. Many researchers argue that traditional management accounting undermined production and could cause disasters to organization‟s productivity and no longer valid for modern day manufacturing environment because the production processes have changed. These changes require relevant, useful, and timely information to assist management in planning and controlling purposes, which traditional management accounting has failed to provide this information. One of the areas that organizations can pursue in order to adapt effectively is to monitor the competitor‟s movements. Strategic management accounting (SMA ) has been identified as a tool that organizations can implement in order to cope up with today competitive business environment. Usable data of 107 indicate that Malaysian manager did practice SMA in their organization focusing on the information pertaining to competitor‟s position, competitor‟s cost and competitor‟s financial condition but not competitor‟s appraisal Keywords: strategic management accounting, traditional accounting.