New benefit: one parent will receive 1 year of free insurance.
Besides existing perks like 98 days of maternity leave, 7 days of paternity leave, and RM1,000 for the newborn, Sarawak is now adding a new benefit—free insurance for one parent for a full year. Feeling tempted to have a baby?
Is this a move to boost low birth rates, or part of Sarawak’s bigger plans after acquiring shares in Affin Bank? Either way, parents of newborns are getting more support.
Starting this year, whenever a baby is born, either the mother or the father will receive one year of free insurance coverage worth up to RM10,000.
Even before this, Sarawak already offered solid support for new parents, including a one-time RM450 maternity allowance.
And babies get a reward too.
Since 2019, Sarawak has provided a RM1,000 incentive for every newborn. This amount isn’t given directly to the parents—it’s placed in a special account (formerly with Islamic Bank, now with Affin Bank), earning 4.2% interest until the child turns 18.
In November last year, the Sarawak Cabinet decided that Affin Bank would take over managing the Newborn Incentive from 2024 onward.
Affin Bank is also enhancing the benefit—the one-year free insurance will automatically take effect once the Newborn Incentive 2.0 account is opened.
In 18 years, the RM1,000 is expected to grow to around RM2,442.
The decision to enhance the Newborn Incentive Scheme reflects both a concern for Sarawak’s population growth and a broader plan to empower families through financial planning and early investment. The involvement of Affin Bank signals a more structured and secure financial platform for the future of Sarawakian children and their parents.
In short, having a baby in Sarawak now comes with a host of benefits—not only for the child but also for the parents. From cash savings and interest-earning accounts to free insurance and maternity aid, these initiatives aim to reduce the cost of raising a child and promote long-term financial well-being for families.
