Another than motivate the university to work hard, Performance-based Funding will help avoid the vicious competition among public university. Competition can be a double-edge in an organization, a suitable level of competition among colleague can improve the performance of organization. However, when vicious competition occurs, it will bring bad effect toward the organization. Same case in public university, to get more budgets from the Ministry of Education, university competes with each other to attract the attention of the Ministry, so that the university can get more funds. In many times, this competition between public universities will become vicious competition; this will bring bad effect toward the development of Malaysia, and the staff and student will become the victims of this competition. This Performance-based Funding could avoid the vicious competition, the funding will based on the performance of the university. In this condition, university will focus more on the achievement on Performance Indicators, and the universities will not have time to compete with each other. In other word, compete with other university do not bring any help in improving the performance of university.