Celik MADANI: Empowering Student Finances

In the effort to realise its Purpose, to uplift the financial lives of Malaysians across generations, Permodalan Nasional Berhad (PNB), through its wholly-owned subsidiary Amanah Saham Nasional Berhad (ASNB), has introduced the initiative Celik MADANI:Celik Kewangan Belia MADANI initiative.

The objective of this initiative is to develop the financial literacy of Malaysia's future generations, empowering them with basic financial tools to ensure they are able to make informed financial decisions in the future.

Launched during the Minggu Saham Amanah Malaysia in August 2024, Celik MADANI targets new students at public, private, and vocational Higher Education Institutions, who will receive an initial investment of RM50 upon registration.

This free initial investment valued at RM50 is a collaborative contribution between the Government of Malaysia and PNB, amounting to RM50 million, which will be distributed to one million new students over the course of five years.

Spearheaded by PNB, Celik MADANI serves as a key component of the Financial Literacy Programme designed specifically for youth in Higher Education Institutions, aimed at enhancing their overall well-being.

A Memorandum of Agreement (MOA) for the Celik MADANI Programme was signed between PNB/ASNB, selected Public Higher Education Institutions (IPTA), and Government-Linked Universities (GLU) in collaboration with the Ministry of Higher Education (MoHE). Effective 1 March 2025 to 28 February 2030, this five-year agreement will involve 20 IPTAs and four GLUs nationwide.

Among the IPTAs involved are Universiti Sains Malaysia (USM), University of Malaya (UM), Universiti Malaysia Terengganu (UMT), Universiti Teknologi Malaysia (UTM), Universiti Sains Islam Malaysia (USIM), Universiti Malaysia Kelantan (UMK), Universiti Malaysia Sarawak (UNIMAS), and Universiti Malaysia Sabah (UMS).

Meanwhile, the participating GLUs include Universiti Teknologi PETRONAS (UTP), Universiti Kuala Lumpur (UniKL), Multimedia University (MMU), and Universiti Tenaga Nasional (UNITEN).

Students from the selected IPTAs and GLUs will receive the free initial investment of RM50, which will be credited into Amanah Saham Bumiputera (ASB) or Amanah Saham Malaysia (ASM) unit trust accounts and locked for five years. This initiative will benefit approximately 200,000 students annually over the five-year period. The second phase of the Celik MADANI programme will involve selected private and vocational institutions.

Why Should Students Save?

Considering the objectives of Celik MADANI, the programme is specifically designed for students at Higher Education Institutions, focusing on encouraging young individuals to plan their finances from an early age, enabling them to make well informed financial decisions in the future.

These first-year students, typically in their early 20s should be exposed to the importance of planning for their future, whether it pertains to their career, family, or purchasing assets such as a new home upon graduation.

By their second year, they might begin thinking about planning their savings, whether from allowances provided by their parents, some portion of their student loans and scholarships, or begin part-time hustle to support their university life, ensuring they are able to save to achieve their goals for their future or some may have to assist their families.

At this age, possessing knowledge and skills in financial literacy is essential, especially for young individuals who are starting to formulate ideas about their future or making basic expenses to sustain their lives as students.

Awareness about savings, investments, retirement planning, insurance, education, debt management, and family planning is critical and requires exposure to better equip them for financial challenges as they transition into the workforce and adulthood. This preparation will help them fulfil their dreams and plans.

Therefore, it is vital to equip these young adults with proper guidance and financial management knowledge to enhance their financial literacy.

Many a Little Makes a Mickle

Through the Celik MADANI initiative, ASNB is committed to providing guidance tools to ensure that this selected group is equipped with the necessary information and savings as they transition into the workforce and beyond.

Even with a modest initial contribution of RM50, if a student is smart and savvy in managing their finances and remains consistent in setting their savings goals, they can accumulate over RM10,000 in 10 years.

With an initial investment of RM50 and a disciplined saving practice, students can witness significant growth in their savings over a period of 5 to 10 years, provided they do not make any withdrawals.

For instance, if a student contributes an additional RM20 per month during the four years and then increases their savings to RM100 per month from their salary once they enter the workforce, they will be able to save a significant amount.

Assuming a dividend return of 5.5% per annum during this period*, their savings could grow considerably, providing them with a solid financial foundation to confidently navigate any circumstances.

*(Note: The simulated return per annum is for illustrative purposes only and is not indicative of the future performance).

PNB and ASNB's Purpose, which is to uplift the financial lives of Malaysians across generations are aligned to the government's direction to empower the quality of life for the rakyat. In addition to guiding and offering secure investment platforms, Celik MADANI fulfils the aspirations of the MADANI Economy: Empowering the people and raising the floor to uplift the status of all.

Celik MADANI will not only have a positive impact on individuals but will also bring long-term benefits by improving the quality of life for future generations and contributing to the socioeconomic stability of families and the nation.