Promoting quality in higher education is one of the top priorities on the agenda of both the UGC and the institutions. Many initiatives were jointly undertaken by the UGC and the institutions in the 1998-2001 triennium in the relentless pursuit of quality education. This undertaking of the UGC is greatly facilitated by its first and foremost role as a funding body.

The UGC defines quality assurance as "the maintenance of the highest possible standards, both in teaching and learning and in research, which are commensurating with an institution's agreed role and mission".

UGC-funded institutions which have acquired self-accrediting status take full responsibility for the quality of their academic programmes. In respect of The Hong Kong Institute of Education, which is non-self accrediting, its programmes at degree or above levels were subject to validation and revalidation by the UGC through the Hong Kong Council for Academic Accreditation. Such programmes organised by Lingnan College were also subject to accreditation before the College was awarded university status and renamed as Lingnan University (LU) in July 1999.

Although the primary responsibility of quality assurance in respect of institutions' academic activities rests with the institutions themselves, the UGC worked closely with institutions in this regard during the reporting triennium through objective reviews and various funding schemes. Such initiatives covered a wide range of university activities. They are detailed in the following paragraphs.