Minister of Culture, Youth and Sports Yang Berhormat Dato Seri Setia Awang Haji Nazmi bin Haji Mohamad addressed challenges in pension fund distribution during the 21st Legislative Council (LegCo) meeting on Thursday, revealing that 45 per cent of recipients now receive their payments through banks.
The minister noted that this issue had been raised in previous LegCo sessions. A survey conducted by the Ministry of Culture, Youth and Sports on October 25, 2022, found that 72 per cent of respondents—782 out of 1,008—preferred receiving their pension funds in cash through their respective village heads rather than via bank transfers.
Challenges identified through the survey include difficulties in receiving funds, limited banking access, and transportation constraints. One of the key obstacles is the inability of some recipients to open bank accounts due to minimum deposit requirements. Additionally, many respondents expressed a preference for in-person collection, citing comfort in interacting with their village head in a familiar setting alongside family and friends.
Another significant issue highlighted was the lack of digital literacy among recipients, making it difficult for them to navigate banking applications and online transactions. The minister also emphasised that personal interactions between pension recipients and village heads serve as a valuable means of identifying concerns, addressing issues, and ensuring their well-being.
Despite these challenges, the number of pension recipients opting for bank payments has steadily increased. “Alhamdulillah, as of February this year, 19,907 recipients—representing 45 per cent of the total 44,405 pension fund recipients—are receiving their funds through banks, a significant rise from just 10 per cent in 2020,” he said.
The minister reassured that the government remains mindful of the challenges faced by senior citizens in adapting to digital payment systems and is committed to working inclusively with pension fund recipients before implementing further changes to the system. – Daniel Lim
