The Retirement Fund (Incorporated), known as Kumpulan Wang Persaraan (KWAP), has launched Jana MyPesara, a RM20 million microfinancing programme aimed at helping government retirees start or expand small businesses.

The initiative is intended to support retirees who may face challenges obtaining financing through conventional banking channels, despite having prior work experience and skills.

The government  said the programme forms part of early measures to address the needs of an ageing population, particularly by encouraging continued economic participation after retirement.

Financing From RM1,000 To RM30,000 Per Retiree

Under Jana MyPesara, eligible retirees can receive financing ranging from RM1,000 to RM30,000. The programme is targeting 3,000 participants and will be implemented as a pilot phase.

In addition to funding, participants will receive guidance and mentoring support to help them manage and operate their businesses in a more structured manner.

Amanah Ikhtiar Malaysia has been appointed as the implementing partner.

Developed Following Survey Of Retiree Interest

According to KWAP, the programme was designed based on survey findings showing that nearly 60% of respondents were interested in venturing into entrepreneurship after retirement, with supplementing income cited as the main reason.

KWAP currently serves more than 810,000 pension recipients nationwide.

Malaysia is projected to reach aged nation status by 2048, when 14% of the population is expected to be aged 65 and above, reflecting a gradual shift towards an older demographic profile.

What This Means For Retirees Considering Business

The RM20 million allocation, spread across a target of 3,000 participants, suggests an average financing size that aligns with small scale or home based businesses rather than larger commercial ventures.

For retirees who may not qualify easily for traditional bank loans due to age or income structure, a dedicated microfinancing scheme could widen access to capital. The inclusion of mentoring and structured guidance also indicates that the programme is designed to reduce business management risks, which can be higher for first time entrepreneurs.

At the same time, as the initiative is being introduced as a pilot, its long term expansion will likely depend on repayment performance, business sustainability, and overall take up among retirees.

For pensioners interested in starting or expanding a small business, Jana MyPesara represents a new financing channel, although participation will depend on eligibility criteria and programme terms set by the implementing partner.

Follow us on our official WhatsApp channel for the latest money tips and updates.