TECHNOLOGY Depository Agency Bhd (TDA), an agency under the Ministry of Finance Malaysia (MOF), has marked significant progress in its performance-based contracting (PBC) efforts with more than 86 agreements across government agencies now worth a combined more than RM7 bil in contracts value.
This reflects Malaysia’s growing push to make government spending more accountable. As of August 2025, these contracts have either been executed or are on-going, involving several key ministries and agencies.
They include the MOF, the Defence Ministry (consisting of: Royal Malaysian Navy, Royal Malaysian Army & Royal Malaysian Airforce), the Royal Malaysia Police (PDRM), the Immigration Department, Home Ministry and the Malaysian Maritime Enforcement Agency.
The achievement is a testament to TDA’s success in the implementation of PBC in government procurement.
This was highlighted at the Malaysian PBC Practitioner Workshop 2025 where stakeholders from across ministries and government agencies gathered to experience and strengthen cooperation.
PBC is a method where the contractor’s payment is directly tied to the achievement of agreed-upon outcomes with rewards for achieving targets and remedies for under-performance.
‘High-performance procurement’
Under PBC, contracts are no longer about ticking boxes. Payments are tied to delivery of specific outcomes, not routine paperwork anymore.
Instead of simply meeting basic requirements, contractors must deliver on agreed service and efficiency targets, ensuring public funds are spent on real results.
“This shows how far we’ve come in moving government contracts from process-driven to performance-driven,” revealed TDA’s CEO Dr Sharoul Jambari.
“By embracing PBC, agencies are showing their commitment to ensuring every ringgit spent brings value to the rakyat.”
Introduced in July 2022, the PBC method is compulsory for maintenance, repair and overhaul contracts worth more than RM25 mil.
Long been practised in the US, Europe and Australia, Malaysia’s steady adoption of this approach shows the country is raising the bar in performance-driven procurement.
The PBC Practitioner Workshop 2025 provided government bodies an opportunity to share experiences, identify challenges and provide feedback that will help refine future policies under the MOF.
It also reinforced the importance of inter-agency collaboration to ensure the contracts sealed deliver both efficiency and long-term benefits for the public.
Additionally, the PBC method sharpened policy recommendations, improved agency readiness and strengthened ties between ministries while re-affirming TDA’s role as a PBC centre of reference for all performance-related matters, both contractual and non-contractual.
With more than 86 contracts already in motion, TDA and its stakeholders are looking ahead to the next phase of embedding performance-based practices across more sectors and strengthening public trust in how government spending is managed. – Aug 22, 2025
