Nor Suzila Lop, Kharizam Ismail, Haryati Mohd Isa and Natasha Khalil.
Keywords: Public Private Partnership, Performance Measurement, Key Performaance Indicators.
Abstract: Malaysia has been ranked as the second highest country in Asia on its infrastructure development through Malaysian Public Private Partnership (3Ps) projects. In this regard, Malaysian government has set a target to become a developed nation under the ‘Vision 2020’ country plan to meet high demands for public infrastructure development. Therefore, 3Ps is anticipated to be one of the drivers of such developments. In Malaysia, privatisation of public projects and 3Ps projects has begun since the 1980s and this trend has continued and maintained until the Eleventh Malaysia Plan (2016-2020). Among the crucial elements in the 3Ps implementation is specifying the standard assessment of private concessionaires’ performance through the execution of key performance indicators (KPIs). Currently, KPIs have served as the most useful performance measurement tool (PMT) in measuring performance of 3Ps projects. However, the methods performed in assessing the performance of 3Ps projects have been criticized among researchers during the implementation of 3Ps projects in Malaysia. Therefore, 3Ps-PMT was develop to assist the construction stakeholders to overwhelm this issue. With 3Ps-PMT, the performance level of the 3Ps projects can be measured easily and more realistic to ensure value for money (VFM) is achieved. The facility offered by 3Ps-PMT can also be adopted as a very effective Performance Audit Tool for continuous learning in 3Ps project management.