Najib hopes ADAM50 will spur birth rate

KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak hopes Amanah Dana Anak Malaysia 2050 (ADAM50) will lead to a higher birth rate as the country strives for economic maturity.

He said countries on the verge of economic maturity usually saw a decline in the birth rate, and Malaysia was no exception.

“To those hoping to have children, please do so as we need (to increase) the population,” he said at the 2018 Budget with the People programme at Universiti Kebangsaan Malaysia Medical Centre here yesterday.

At the event, Najib launched ADAM50, which was announced in the 2018 Budget.

He toured the maternity ward and handed out hampers to new mothers.

Under ADAM50, babies born between Jan 1 this year and 2022 will receive initial savings of RM200 via Amanah Saham Bumiputera units (for Bumiputeras) and Amanah Saham 1Malaysia for non-Bumiputeras if the child is registered within a year from birth. The savings can be withdrawn only once the child is 18.

Najib said ADAM50, the first such fund in Malaysia, aimed to inculcate the saving habit in young parents.

“We want people to save for the future. Many people do not plan for their needs or their children’s needs.

“You can add to the account little by little, and when your child goes to university, the money is there.”

Permodalan Nasional Bhd chairman Tan Sri Abdul Wahid Omar said the initial RM200 would increase even if parents did not add money.

“Even if parents do not add to the amount, the RM200 will grow to RM587. However, if parents contribute RM10 a month, the amount will reach RM4,000 (at withdrawal age).

“If they put RM50 a month, it will reach RM20,000; if they put RM100, it will reach RM40,000 when the child reaches 18.”

He said 4,600 babies had registered under ADAM50, which was 14 per cent of the total number of babies registered with the National Registration Department.