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Higher education is viewed as part of the national agenda in transforming Malaysia into a high-income nation. This has resulted in a sky-rocketing number of graduates in Malaysia's recent history. Industry relies on higher education as the source of skilled employees, and it is important for industry to attract and retain talented employees in their effort to remain competitive in the market. This article presents an overview of the higher education system in Malaysia that has in the recent years jumped onto the "industry-driven" wagon. The impacts of both industry-driven and society-driven systems are discussed. The article concludes with practical recommendations for higher education institutions in Malaysia to encourage a balanced higher education policy and strategy that can blend industry-driven and society-driven approaches as a joint-agenda for institutions of higher learning.