The government has announced a new incentive for every Malaysian baby born between 1 January 2018 until 31 December 2022.
The Amanah Dana Anak Malaysia 2050 (ADAM50) officially kicked off on 1 January with the aim of providing babies born in the said period with RM200 worth of unit trust.
Bumiputra babies will get their unit trusts credited to their Amanah Saham Berhad (ASB) account while non-bumiputra babies get theirs credited to their Amanah Saham 1Malaysia (AS 1Malaysia) account.
Parents can start investing for their children’s future with a maximum investment limit of RM200,000 for ASB accounts, and RM50,000 for AS 1Malaysia accounts.
According to The Star, with every additional RM50 investment every month and assuming a retained 6 per cent income distribution rate per annum, your child will have RM19,574 by the time he or she reaches the age of 18.
Wow, that’s a lot of money which could also then be used for your child’s tertiary education!
So how does one apply for this incentive?
You must register your child for the ADAM50 up to one year from the date of birth. The mother, father or guardians of the baby must be Malaysian citizens aged 18 and above.
Permodalan Nasional Berhad (PNB) president and CEO Datuk Abdul Rahman Ahmad told The Star “Once the account is activated, the RM200 will be credited automatically into the baby’s ASB or AS 1Malaysia account.”
“After registering their baby’s birth at the National Registration Department, parents can then head to Amanah Saham Nasional Berhad (ASNB) or its agent banks such as Maybank or CIMB to register,” Abdul Rahman added.
The incentive will be fully borne by the government and PNB over the next five years in hopes to inculcate saving and investment habits from a young age.