LETTER | The newly-introduced saving scheme Amanah Dana Anak Malaysia 2050 (ADAM50) which was initiated by Permodalan Nasional Berhad (PNB) could inculcate a culture of early saving among Malaysian parents, especially those whose babies were born starting this year.

ADAM50 lasts for five years and is expected to attract thousands of parents to garner benefits from the initiative. A savings habit among parents, especially new ones, could be nurtured via ADAM50.

Tabled during the 2018 Budget, ADAM50 is a national agenda that should have been realised earlier as it could assist future generations to financially survive, especially when they make their steps into the universities.

The initial RM200 allocation is a relevant amount for a new savings initiative like ADAM50.

As someone who will get married and build a family life this year, I personally believe that ADAM50 is a wise investment move orchestrated by the government via PUNB to encourage parents to start early savings for their babies.

If a parent saves RM150 consistently every month for 18 years, their ADAM50 savings amount would be RM32,600 including the initial amount of RM200.

Like a Malay proverb says: "A mammoth earning begins with continual small savings."

As kids turn 18 years old, they can withdraw from their ADAM50 accounts for educational purposes like studies fees and daily campus expenditures.

Savings withdrawn from their ADAM50 accounts could greatly relieve financial burdens faced by their parents, especially retirees.

In fact, parents would no more rely on education loans by the time their kids commence their tertiary studies.

Parents' earnings like pensions, ASB dividends and KWSP savings could be reserved for important spending after their kids’ graduations.

ADAM50 could also greatly reduce burdens of study loan repayments faced by students. Problems of graduates being blacklisted in CCRIS due to unpaid education loans could also be eliminated.

Even after the five-year period for ADAM50 ends, I believe that future parents could still be inspired by the initiative in realising early savings discipline for their newly-born babies.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.