Malaysia has 20 government-funded and 33 private universities.
Some 160,000 students graduate with a diploma or a degree each year.
The University of Malaya, ranked 246th, is the country's oldest university.
The National University of Malaysia, which plunged to 309th place from 185th last year, was set up in 1970 to provide more higher education opportunities for Malays.
Penang-based Malaysian Science University offers science-related courses such as medicine and engineering. It was ranked 307th this year.
This is the first time that no Malaysian university has made it to the survey's Top 200 list.