TTF: Before everyone gets all rilled up about Zeti’s latest announcement that the BN inspired Amanah Dana Anak Malaysia 2050 (Adam50) will be discontinued (see news item below), consider this:
The government says it lacks funds due to the so-called RM1 trillion debt left behind by Barisan Nasional.
However, it is willing to fork out RM120 per year per child for every household under Budget 2019, limited to a maximum of 4 children per household.
Does that not make Adam50 a better solution?
I mean, wouldn’t it be Budget effective for children to be handed RM200 via units of ASB (for Bumiputera) and AS1M (for non-Bumiputera) given that the fund would accumulate wealth over a period of 18 years?
Some of that wealth will undoubtedly go to government.
So wouldn’t that reduce the government’s payout burden in the longer run, such that the effective sum needed to be forked out by government per child, at maturity, when broken down, could well end up being significantly lower than RM120 per year?
Zeti herself knows that the discontinuation of Adam50 makes no sense whatsoever.
However, neither she nor Mahathir have control of the country’s circumstances as the Ministry of Finance is being held ransom by Lim Guan Eng.
Thanks to him, Malaysians are receiving less and less aid despite Budget 2019 being the biggest budget ever in the country’s history.
Question is, where are all the excess funds the government seems to be accumulating being channeled to?
I was told that some of the funds meant for Bumiputra related projects ended up being channeled by Tony Pua’s men towards evangelist themed programmes.
Will the Ministry of Finance allow my team to partake in an independent probe to verify this?
KUALA LUMPUR: Amanah Dana Anak Malaysia 2050 (Adam50), introduced in January by the Barisan Nasional (BN) government, will be discontinued by year-end, said Permodalan Nasional Bhd (PNB) group chairman, Tan Seri Zeti Akhtar Aziz.
Under the scheme, a baby born between Jan 1, 2018 and 2022 would receive RM200 via units of ASB (for Bumiputera) and AS1M (for non-Bumiputera) as long as the child is registered within a year of its date of birth – but the savings could only be withdrawn after the child reaches 18 years of age.
Zeti said the response to the programme has been poor, with only about 25 per cent of babies born in 2018 registered thus far.
“The government allocated RM10 million for this purpose and the fund has been fully utilised. Given the fact that the current government’s financial position needs to be strengthened, it is not able to allocate further funds.
“So… PNB has been providing an allocation of RM10 to RM20 million to honour the initiative,” she told reporters after announcing the income distribution for Amanah Saham Bumiputera and Amanah Saham Nasional for the financial year ending Dec 31, 2018.
Source: NST Online