Malaysia has started rolling out its new-generation MyKad identity cards under a pay-per-issue payment model, charging RM40 only for each card successfully issued to applicants, Home Minister Datuk Seri Saifuddin Nasution Ismail confirmed in a parliamentary reply on June 23, 2026 [1, 2, 3].

The rollout began this month with NexG Bhd, which was awarded a six-year contract worth RM732.72 million in October 2025. The contract covers supplying MyKad and MyTentera cards from June 1, 2026, to May 31, 2032 [1, 3].

The government expects the program to cost about RM120 million annually based on issuing 3 million cards a year. Actual spending will depend on the number of cards issued, as payment is made per successful issuance, said Saifuddin: "The implementation of the new-generation MyKad is carried out under a pay-per-issue supply contract, where the government only pays for each card successfully issued to applicants" [1, 2, 3].

The new MyKad features enhanced security technologies, including ghost image technology to reduce forgery and tampering, replacing older-generation cards [1, 3]. However, the government does not plan a full or rushed replacement of existing MyKad cards. Saifuddin said, "The government has no plans for a full or rushed replacement exercise, as the MyKad currently used by the public remains valid and can continue to be used" [1, 2, 3].

Replacement will be phased and limited to specific groups: new users aged 12 and above, holders of older plastic cards, high-quality cards, and the first-generation MyKad cards lacking ghost image security features will be prioritized for replacement [1, 2, 3].

Applicants will continue to pay a processing fee of RM10, unchanged from previous rates despite the new rollout [1, 2, 3].

The rollout represents a government effort to control costs by tying expenditure directly to card issuance volume while upgrading identity security. The next key milestone will be ongoing monitoring of issuance volumes to assess annual budget needs as the phased replacement continues [1, 2, 3].