Malaysia Introduces Digital Pension Payments and MyPesara Plus to Support Government Retirees

More than 835,000 government retirees and derivative pension recipients in Malaysia will benefit from two new initiatives introduced by the Public Service Department (PSD) to improve pension accessibility and provide additional lifestyle benefits.

Launched on 24 July 2026 during the PSD Monthly Assembly in Putrajaya, the initiatives include the introduction of Touch 'n Go e-Wallet as an alternative pension payment channel and MyPesara Plus, a programme that offers discounts and exclusive privileges through partnerships with private companies.

According to the PSD, there were 835,146 government retirees and derivative pension recipients recorded as of May 2026.

Touch 'n Go e-Wallet Introduced as an Alternative Pension Payment Channel

For the first time, the Malaysian government has introduced Touch 'n Go e-Wallet as an alternative channel for pension payments.

The initiative is intended to help government retirees and derivative pension recipients who are unable to receive their monthly pensions due to banking issues, including:

Frozen bank accounts
Blocked bank accounts
Financial fraud affecting their accounts

The initiative is a collaboration between the Public Service Department (PSD), the Ministry of Finance (MOF), the Retirement Fund (Incorporated) (KWAP), and Touch 'n Go e-Wallet.

According to the PSD, the digital payment option enables affected pension recipients to continue receiving their monthly pension payments without disruption through a more flexible and secure payment channel.

As of May 2026, 122 retirees had received their pension payments through Touch 'n Go e-Wallet, with total monthly disbursements amounting to RM254,841.21.

Besides providing greater convenience, the initiative is also expected to reduce retirees' exposure to financial fraud while offering an alternative payment method when banking issues occur.

MyPesara Plus Expands Benefits for Government Retirees

Alongside the new payment channel, the PSD also launched MyPesara Plus, an enhanced version of the Pensioner Benefits Programme that expands the range of benefits available to government retirees through partnerships with private sector organisations.

Under the programme, the pensioner card continues to serve as an identification document for receiving treatment and medication at government healthcare facilities. It can now also be used to enjoy discounts and special offers from participating merchants.

Retirees can access these benefits by presenting either:

Their physical pensioner card, or
The MyPesara mobile application.

The programme aims to make these benefits more accessible while helping retirees manage their cost of living after retirement.

Benefits are available across several sectors, including:

Healthcare
Pharmaceutical products
Transportation
Retail
Accommodation

First Seven Strategic Partners

To mark the launch of MyPesara Plus, the PSD announced its first seven strategic partners:

Nasken International (M) Sdn. Bhd.
Zuspresso (M) Sdn. Bhd.
Sogno Coffee Sdn. Bhd.
Etiqa Family Takaful Berhad
Ar Razi Medical & X-Ray Polyclinic
Primer Group AZK
GCH Retail (M) Sdn. Bhd.

These partners provide exclusive discounts and privileges for eligible government retirees through the MyPesara Plus programme.

PSD Continues to Strengthen Support for Retirees

Speaking during the launch, Tan Sri Wan Ahmad Dahlan Abdul Aziz, Director General of the Public Service, said government retirees remain among the PSD's key stakeholders after years of dedicated public service.

He said the department's role extends beyond administering pension payments. PSD is committed to ensuring retirees continue to enjoy services that are accessible, secure, and relevant to their needs after retirement.

According to him, the introduction of Touch 'n Go e-Wallet and MyPesara Plus reflects the government's commitment to improving retirees' wellbeing through digital innovation and stronger public-private collaboration.

The PSD also said it will continue expanding collaborations with ministries, government agencies, and industry partners to introduce more relevant benefits and improve the quality of life for government retirees.

FAQs

Who can use Touch 'n Go e-Wallet to receive pension payments?

The Touch 'n Go e-Wallet payment channel is intended for government retirees and derivative pension recipients who experience banking issues, such as frozen or blocked bank accounts, subject to the requirements set by the Public Service Department (PSD).

Why did the government introduce Touch 'n Go e-Wallet for pension payments?

The initiative provides an alternative payment channel for pension recipients whose bank accounts are affected by issues such as fraud, freezing, or restrictions. It helps ensure pension payments continue without unnecessary delays.

Do all government retirees have to switch to Touch 'n Go e-Wallet?

No. Touch 'n Go e-Wallet is introduced as an alternative payment channel, not a replacement for existing pension payment methods.

What is MyPesara Plus?

MyPesara Plus is an enhanced programme by the Public Service Department (PSD) that gives government retirees access to discounts, promotions, and exclusive privileges through participating private sector partners.

How can retirees use MyPesara Plus?

Eligible retirees can enjoy MyPesara Plus benefits by presenting either:

Their physical pensioner card, or
The MyPesara mobile application,

at participating merchants.

What benefits are available through MyPesara Plus?

MyPesara Plus offers discounts and special promotions across various sectors, including:

Healthcare
Pharmacy
Transportation
Retail
Accommodation

More participating partners are expected to join as the programme expands.

Can family members enjoy MyPesara Plus benefits?

The availability of benefits for family members depends on the terms and conditions of each participating partner. Retirees should check directly with the respective merchant.

Where can retirees check the latest MyPesara Plus partners and promotions?

Retirees can view the latest participating partners, promotions, and programme updates through the MyPesara mobile application or the Public Service Department's official announcements.

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