A significant global trend during the 1990s is the restructuring of higher education systems. The essence of this restructuring process is a redefinition of the relationship between institutions of higher learning, the state, and the market, and a drastic reduction of institutional autonomy. This article is an analysis of the restructuring process in the forms of privatisation of higher education and corporatisation of public universities in Malaysia. This analysis highlights the context of higher education reforms in the era of globalization, major trends in higher education reforms and Malaysia's responses to these global trends. By focusing on the institutional level, this article examines the expansion and diversification of private higher education as well as the change in the governance and culture of public universities brought about by privatisation and corporatisation.