The service sector in Malaysia has been identified as one of the key sectors to move the country towards high-income economies. In the Tenth Malaysia Plan, the service sector is seen as new catalyst for Malaysian economic growth that subsequently make it more competitive. Hence, the vision of 2020 Nations status will be achieved. So that Malaysia can compete with other developing countries and increasing nation\u2019s status and consequently can achieve a national mission Vision 2020. However, issue of globalization in influencing this sector perceived as either big challenge to raise this sector status in lead national economy. Globalization played an important part and give impact in services sector either directly or indirectly. Globalization process such as foreign labor participation, trade and so on will be affecting on services sector through TFP services sector. The main objective in this study is to identify globalization effect on TFP services sector in Malaysia. This study will use Panel Static Test and Panel Dynamic Test by using MG and PMG Test. Results had showed globalization very giving influence to TFP in services sector in Malaysia and find all variable having significant relationship in long run.<\/p>\n","protected":false},"template":"","tags":[1070,1071,596],"jel-code":[],"article-type":[1329],"class_list":["entry","author-jem","post-5534","article","type-article","status-publish","tag-globalisation","tag-overall-productivity-factor","tag-service-sector","article-type-normal-article"],"yoast_head":"\n