Defence Readiness & National Security
Ministry of Defence (MINDEF)
28+ Defence-Related PBC Contracts
Strengthened defence readiness, improved operational availability and enhanced performance-driven decision-making across strategic defence assets.
Performance-Based Contract (PBC)
Performance-Based Contract (PBC) is an approach that focuses on results rather than activities.
Performance-Based Contract
Real Results. Measurable Impact.
Performance-Based Contract (PBC) is helping government agencies deliver better outcomes by focusing on performance, reliability and value. Through collaboration with ministries, agencies and strategic asset owners, TDA has supported the implementation of PBC initiatives across defence, transportation, maritime, aviation, healthcare, digital infrastructure and public services.
These success stories demonstrate how outcome-focused contract strengthens operational performance, improves accountability, enhances asset readiness and maximises the value of public investments for the benefit of Malaysia.
As of August 2026
At a Glance
132
PBC contracts developed since 2016
RM14.6 B
Cumulative contract value
30
Government agencies involved
79
Contracts currently under development
Success Stories
Explore Success Stories
Discover how Performance-Based Contract (PBC) is transforming public sector performance and delivering measurable value across Malaysia.
Government Asset Management
Multiple Government Agencies
Outcome-Based Asset Management
Enhanced asset availability, reliability and operational performance through structured performance measurement and outcome-focused contract management.
What is PBC?
Performance-Based Contract (PBC)
Performance-Based Contract (PBC) is an approach that focuses on results rather than activities. Instead of measuring how much work is done, PBC measures whether the desired outcomes have been achieved.
This ensures that services, assets and infrastructure perform according to agreed standards while delivering better value for public expenditure.
In Simple Terms
Traditional contracts
Traditional contracts pay for activities performed.
Performance-Based Contract
PBC pays for the results achieved.
For example, rather than paying for a contractor to carry out a fixed number of maintenance visits, PBC focuses on ensuring that an asset remains available, reliable and fit for purpose.
How PBC Works
A Structured Framework for Better Outcomes
PBC follows a clear and systematic process that helps organisations define expectations, measure performance and continuously improve outcomes.
01
Plan
Define the desired outcomes, performance targets and contract requirements.
02
Develop
Establish the Performance Management Framework (PMF), including KPIs and performance standards.
03
Implement
Deliver services and manage assets according to agreed performance levels.
04
Monitor
Track results through regular performance reviews and reporting.
05
Review
Analyse results, identify improvements and strengthen long-term performance.
Real Results. Measurable Impact.
Measuring Performance
How Success is Evaluated
PBC uses a combination of performance measures to provide a complete picture of contract performance.
SHI
System Health Indicators (SHI)
Measures whether operations are on the right track and prepared for success.
Readiness
Compliance
Resource availability
KPI
Key Performance Indicators (KPI)
Measures actual service performance against agreed targets.
Asset availability
Service response times
System uptime
SPM
Strategic Performance Measures (SPM)
Measures the broader outcomes and long-term value delivered to the organisation.
Operational effectiveness
Stakeholder confidence
Strategic objectives achieved
Together, these indicators provide a balanced view of performance, from day-to-day operations to long-term organisational impact.
Benefits & Impact
Delivering Value for All Stakeholders
Performance-Based Contract creates benefits for agencies, service providers and the Government.
01
Government Agencies
Better asset availability, improved reliability and enhanced service quality.
02
Service Providers
Clear expectations, stronger partnerships and incentives linked to performance.
03
Government
Better value for money, more efficient spending and stronger accountability.
Our Clients
Trusted by Ministries and Agencies Across Malaysia
PBC has been implemented across a wide range of sectors, supporting strategic assets and critical public services nationwide.
MINDEF
ATM
TDM
TLDM
TUDM
PUTD
PDRM
APMM
APM
MOT
JPJ
RAC
CAAM
JPN
JDN
JIM
JANM
KKM
IKN
KPM
JPSPN
MOF
RTM
Create better outcomes
Let’s Create Better Outcomes Together
Every organisation strives to deliver reliable services, optimise resources and create value for the people they serve. Performance-Based Contract provides a structured approach to achieving these goals through measurable outcomes and continuous improvement.
Speak with Our PBC TeamWhether you are at the early planning stage or already managing complex assets and contracts, TDA can help you explore how PBC can support your organisation’s objectives.
