Education plays a crucial role in creating individuals who contribute positively to the development of a country. The private education sector in Malaysia, has proven to be a major source of revenue for the Malaysian government, and it is the government’s aspiration to capture a large percentage of the higher education global market. The purpose of this paper is to analyse the challenges faced by academic leaders in managing private universities in Malaysia and to provide feasible recommendations to overcome them. The findings are expected to provide valuable information to the management of Malaysian private universities, policymakers, and regulatory agencies. The information gathered could provide enlightenment regarding the difficulties faced in order to design and implement further policies to elevate their operational method and ensure long-term survival. Valuable recommendations have been provided to ensure the institutions remain profitable and sustainable as the development of Malaysia’s social and economic sector is dependent on its education sector.