Purpose: This study examined the economic and social impact of Malaysian universities on their communities from stakeholders' perspectives. It analysed whether university stakeholders' spending, human capital (HC) and knowledge exploration (KE) will impact aggregate income (AI), quality of life (QOL) and business growth (BG) in surrounding communities. Design/methodology/approach: A survey was conducted among 540 university stakeholders from the southern, northern and eastern regions of Malaysia, representing the alumni, community and industry. Data were subjected to factor analysis using structural equation modelling (SEM). Findings: Results showed that universities impacted communities' economic development and wellbeing, thereby fulfilling their community-related role. Originality/value: This study addressed universities' role in communities' economic growth and social development. Universities' contributions towards communities can be improved through the proposed model, which suggests ways to maximise their impact. A more detailed study of a particular university is needed to identify other factors that can strengthen universities' impact, even at national and global levels.