In September 2005, the new world ranking published by the Times Higher Education
Supplement was received like a bomb shell in Malaysia when it showed the country’s top
two universities slipping by almost 100 places compared to the previous year.
Notwithstanding the fact that the big drop was mostly due to a change in the ranking
methodology, the news was so traumatic that there were widespread calls for the
establishment of a Royal Commission of Inquiry to investigate the matter. This strong
reaction was not out of character in a nation whose current Ninth Development Plan aims
at shaping the transformation of the country into a knowledge-based economy with
emphasis on the important contribution of the university sector.

Preoccupations about university rankings reflect the general recognition that economic
growth and global competitiveness are increasingly driven by knowledge, and that
universities can play a key role in that context. Indeed, rapid advances in science and
technology across a wide range of areas from information and communication
technologies (ICTs) to biotechnology to new materials provide great potential for
countries to accelerate and strengthen their economic development. The application of
knowledge results in more efficient ways of producing goods and services and delivering
them more effectively and at lower costs to a greater number of people.

The full report may be download as a PDF here.