Prior to the implementation on Private Finance Initiative (PFI), Malaysia has implemented many different private sector participation models, prominently the privatisation model. PFI is observed as streamlining the previous privatisation by stipulating the standard regular evaluation of privatised entities'' performance through key performance indicators (KPIs). KPIs are expected to confront the privatised infrastructure project''s problems of shoddy workmanship, unfinished and delayed projects. Thus, with the aim of formulating the definition and variables of the KPIs for the assessment of public infrastructure PFI projects performance in Malaysia, this research establishes the KPIs of PFI for the development of public infrastructure in Malaysia. As KPIs are one of the key elements of PFI, this KPIs establishment urges the need for PFI guideline in standardising the execution of various schemes of Malaysia''s PFI, rising private concessionaire''s responsibility and accountability in providing public projects and finally encouraging the KPIs implementation in Malaysia''s construction industry.