Of the five other Irish third-level institutions, UCC stayed at 283rd in the rankings and Dublin City University fell 11 places to 391, while the University of Limerick, Dublin Institute of Technology and Maynooth University all remained outside the top 500.
According to the latest Quacquarelli Symonds (QS) World University 2018 released today, Malaysia is now home to five of the world's top 300 universities.
The findings were revealed in the annual QS World University Rankings, showing the planet's top 959 institutions. NUS came in at 15th place in the latest rankings, dropping three spots from 12th. NTU vaulted to 13 spot in 2015, and held the same rank a year ago.
Professor Bertil Andersson, president of NTU, noted that the university had risen from the 74th place in the 2010 QS ranking, and said: "As a university, we have been in hyper drive - ramping up research, designing innovative academic and research programmes, building new facilities and more".
QS research director Ben Sowter said: "Seven Malaysian universities improve their score for QS's Academic Reputation metric, while eight improve their score for QS's Employer Reputation metric".
Researchers also blamed tightened budgets on the ability of lecturers to "deliver world-class teaching".
NTU has jumped 45 places since 2011 to quickly shoot up the world ranking.
In the last three years, it has also topped the QS Top 50 under-50 ranking, which tables the world's best young universities below 50 years old. Eight out of the top 10 universities in the United Kingdom fell at least one place, with the University of Manchester falling five places to 34th in the world, and the University of Warwick falling by six from 51st to 57th.
He also listed three other "success factors", which are "people, people, people".
But SMU students still have the best starting salary.
Corporatised in 2006, NTU had the flexibility to chart its own strategic directions.
"Our management school is very highly ranked; we have strong environmental sciences and cyber security".
"The fact that an institution of NTU's youth and profile finds itself on the brink of the world's top 10 is a remarkable achievement and a testament to a concentrated, selective funding model, strong and consistent leadership, sticking with an ambitious tactical plan and a radical approach to global partnerships and collaboration", said research director at QS Ben Sowter. However, there is still plenty of room for improvement, especially in the "employers reputation" indicator, suggesting that a closer collaboration between the corporate world and the leading universities is essential.