KUALA LUMPUR: The Amanah Dana Anak Malaysia (ADAM50), which will be implemented on January 1 next year, will benefit about 2.8 million Malaysian infants over five years, Permodalan Nasional Bhd (PNB) said.
ADAM50 is estimated to cost RM560 million over the five years, PNB said in a statement today.
Under the initiative, all Malaysian babies born from January 1 2018 to December 31 2022 will receive 200 free incentive trust fund units, which will be credited automatically in the unit trust funds managed by Amanah Saham Nasional Bhd after the registration process is completed by their parents or guardian.
ASNB is a wholly-owned subsidiary of PNB.
“PNB is honoured to be given the opportunity to work with the government in an effort to promote savings and investment culture among Malaysian,” PNB group chairman Tan Sri Abdul Wahid Omar said in a statement.
“The total cost of ADAM50, which will be implemented for five years from 2018 to 2022, is estimated to reach RM560 million and will benefit about 2.8 million Malaysian infants,” he continued.
Prior to this announcement, ASNB unit trust funds are readily open to individuals as early as six months of age. But with ADAM50 now, all Malaysian babies born in 2018-2022 will have an account with the government, with PNB providing the initial incentive units.
The 200 incentive units and all dividends received on this initial amount can only be redeemed when the child reaches 18 years of age.
Additionally, as part of PNB’s effort to encourage additional investments in the infants’ account, the parents or guardians of non-Bumiputera infants can also invest up to 50,000 units.
Further information on ADAM50 will be announced at the launch soon, PNB said.
Two other joint initiatives between PNB and the government are specifically in the Socio-Economic Development Unit of the Indian Community, Prime Minister's Department (SEDIC) which aimed at increasing the investments of Malaysian Indians are a special investment scheme for the lower income group (B40) and an investment top-up scheme for the Indian community.
The first scheme is a special investment loan scheme for 100,000 participants from the B40 group to apply for a zero-interest loan of RM5,000 for the purpose of investing in Amanah Saham 1Malaysia (AS 1Malaysia) managed by ASNB.
The government has allocated a total of RM500 million for a five-year period for this special investment loan scheme.
Additionally, for Bumiputera unitholders PNB is proposing to increase the investment limit of Akaun Remaja ASB from 50,000 units to 200,000 units, subject to compliance requirements.