Govt triples Postal Service Fund to RM150m, eyes Q1 2027 rollout to support rural deliveries

Communications Minister Datuk Seri Fahmi Fadzil speaks during the World Post Day 2026 celebration and special stamp launch at Pos Malaysia headquarters in the Dayabumi Complex, Kuala Lumpur, on October 10, 2026. — Picture by Firdaus Latif

By Soo Wern Jun

First Published: Saturday, 10 Oct 2026 1:56 PM MYT

KUALA LUMPUR, Oct 10 — The government has allocated RM150 million to activate the Postal Service Fund, which is now expected to begin operating in the first quarter of 2027, Communications Minister Datuk Seri Fahmi Fadzil said today.

He said the initial fund will, among other things, support the Universal Service Obligation (USO), particularly the delivery of letters to rural areas, remote locations and islands.

“The government has agreed to activate the Postal Fund, which will hopefully begin operating in the first quarter of 2027, with initial funding of RM150 million,” Fahmi told a press conference after officiating the World Post Day celebration at the Pos Malaysia headquarters here today. 

Fahmi had previously said in January that the government was targeting the fund’s introduction by the third quarter of 2026.

The RM150 million allocation is three times the RM50 million funding previously announced for the programme.

Acknowledging the changing landscape of e-commerce and digital technology, Fahmi said this also meant that adjustments might be needed to policies, legislation and operational practices governing the postal sector.

He stressed that the welfare of postal and courier workers must also be protected, including ensuring fair compensation and decent wages.

“We do not want a situation where there is excessive imbalance,” he said.

He added that MCMC had begun engagement with e-commerce service providers, with discussions to be extended to major courier companies.

The commission would also continue discussions with regulatory agencies, including the Royal Malaysia Police and the National Pharmaceutical Regulatory Agency, to address complaints involving e-commerce transactions and parcel deliveries.

Fahmi said the Postal Service Fund had been provided for under legislation since 2012, but previous governments had not taken steps to operationalise it.

He said he had also asked that the fund’s scope not be limited to conventional postal services, noting that deliveries of goods to remote communities could also serve an important function.

“MCMC will make a full announcement in due course to explain the functions of the Postal Fund,” he added. 

The Postal Service Fund was provided for under Section 98 of the Postal Services Act 2012, which places it under MCMC’s control and operation. 

Section 98 also explained how the fund is to comprise money provided by Parliament and contributions from licensees or other parties. 

Under this provision, it also permits spending on universal postal services, expanding and improving the postal network, technology and other postal-related purposes determined by the minister. 

In-line with the World Post Day, Fahmi said the Communications Ministry, MCMC and Pos Malaysia would work together on special initiatives to mark the 70th anniversary of National Postal Day, including efforts to strengthen ties between Pos Malaysia and the Malaysian Philatelic Society.