Malaysian Babies Born From 2018 To 2022 Will Receive RM200 Under ADAM50
More than dozens of Malaysian newborns were among the earliest to receive a special incentive from the government on 1 January
As families welcomed their bundles of joy on New Year's Day, some parents already received early savings for their children in the form of the Amanah Dana Anak Malaysia 2050 (ADAM50) incentive.
It was reported that Permodalan Nasional Berhad (PNB) had gone to 30 different hospitals nationwide for the pre-launch ceremony on the first day of the new year, to gift all babies born on 1 January 2018 with ADAM50 certificates and hampers.
"I am excited to have two good news. First, that my baby was born on 1 January, and that she became among the first ones to receive ADAM50," said Nur Syuhada Mohd Ziz, a mother who just gave birth to her fifth child, as reported by Bernama.
ADAM50 was announced last year during the tabling of Budget 2018, whereby newborns will receive a one-off unit trust incentive
An initial savings of RM200 worth of unit trust will be credited into the Amanah Saham Bumiputera (ASB) account for Bumiputera babies or the Amanah Saham 1Malaysia (AS1M) account for non-Bumiputera babies, as long as they are babies born between 1 January 2018 and 31 December 2022.
The scheme is expected to benefit some 2.5 million Malaysian babies as the ADAM50 will be implemented for the next five years with a total cost of RM500 million, to be borne equally by the government and PNB.
The introduction of this scheme is intended to encourage parents to start saving for their children
"The scheme also meant to teach parents about investment culture and encourage them to invest in their children's future.
"We encourage all parents whose children are eligible for the scheme to participate," PNB president and group chief executive officer (CEO) Datuk Abdul Rahman Ahmad was quoted as saying by Malay Mail Online.
According to Abdul Rahman, by making an additional monthly investment as little as RM50, a beneficiary would have accumulated about RM20,000 when he or she reaches the age of 18, assuming a retained 6% income distribution rate per annum.
Here's how to register for the ADAM50 scheme:
A newborn will be able to receive the incentive as long as the Malaysian baby is registered within a year from his or her date of birth. For example, if a baby is born on 4 February 2018, then the parent or legal guardian must make the registration by 4 February 2019.
Registration can be made at any Amanah Saham Nasional Berhad (ASNB) branch or through appointed ASNB agents including Maybank, CIMB, RHB, Affin Bank, AmBank, and Pos Malaysia.
Remember to bring the following documents that will be required for registration:
• Parent's or legal guardian's identification card;
• The child's MyKid or birth certificate;
• Relevant supporting documents such as court documents if the legal guardian is not the biological parent of the child.
The RM200 incentive will be credited automatically into the beneficiary's account once the registration is completed
Do note that the incentive and any income distribution, including additional distribution (if any) arise from this incentive unit, can only be withdrawn when the child turns 18.
For more information, visit the Amanah Saham Nasional Berhad website.
The government is also giving out incentive to all young Malaysians who want to start saving early for retirement: