Baby investors
New Year’s Day saw the birth of an investment generation of Malaysians, with babies born from now until 2022 eligible to receive a special Amanah Dana Anak Malaysia 2050 (ADAM50) unit trust of RM200. Parents beamed at the double joy of having New Year bab
KUALA LUMPUR: You are never too young to start investing – Malaysian babies are proof of that, because they will now start from the day they are born.
With the Amanah Dana Anak Malaysia 2050 (ADAM50) that kicked off yesterday, every Malaysian baby born from Jan 1 until 2022 will receive RM200 worth of unit trust.
For bumiputra babies, the amount will be credited into Amanah Saham Bumiputera (ASB), while non-bumiputra babies will have the incentive put in Amanah Saham 1Malaysia (AS 1Malaysia) accounts.
Permodalan Nasional Berhad (PNB) president and CEO Datuk Abdul Rahman Ahmad urged all new parents and parents-to-be to take advantage of the incentive to save for their children.
“It is the hope of the Government and PNB to inculcate a habit of saving and investing among Malaysians.
“We would also like to encourage parents to make additional investments in ADAM50 and take advantage of the compounding interest.
“The investment limit for ASB will be up to RM200,000 while for AS 1Malaysia, it will be up to RM50,000,” he told a press conference after handing over RM200 ADAM50 certificates and hampers to the parents of babies born at the Kuala Lumpur Maternity Hospital here, during a pre-launch ceremony witnessed by Kuala Lumpur Hospital director Datin Dr Noor Akma Shabuddin.
With a monthly additional investment of only RM50 and assuming a retained 6% income distribution rate per annum, the total investment when the child reaches 18 years of age would be RM19,574 compared to only RM571 if there is no additional investment.
ADAM50 is a special free incentive worth RM200 in the form of unit trust which was announced by Prime Minister Datuk Seri Najib Tun Razak in Budget 2018.
Abdul Rahman added that with an annual birth rate of around 500,000 in Malaysia, the total cost of providing the incentive over five years will be around RM500mil, to be borne equally by the Government and PNB.
The registration period for ADAM50 is up to one year from the date of birth. The mother, father or guardians of the baby must be Malaysian citizens age 18 and above.
“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 said.
He added that the ADAM50 incentive was being offered up to Dec 31, 2022, as a trial concept and not an open-ended commitment so that the Government and PNB can gauge the take-up rate for the benefit.
For more information, visit www.asnb.com.my, call 03-20573000 or e-mail asnbcare@pnb.com.my.
The pre-launch ceremony saw ADAM50 certificates presented to all parents of newborn babies at 30 hospitals nationwide.