Breaking: Alex Borg Proposes National Trust Fund For Every New Child
Opposition Leader Alex Borg has proposed the establishment of a national trust fund for every new child, where funds would be invested and made accessible once they reach adulthood.
Borg unveiled this proposal in his Parliament reaction to the government’s 2026 Budget.
As per the plan, the government would invest €5,000 in a trust fund for every Maltese child born in Malta.
Foreign children born in Malta would also be eligible, provided their parents meet certain criteria, including having resided in Malta for at least five years.
The reasoning behind this restriction for foreigners is to ensure the money is only available for people who already have a strong bond with the country.
The money would be administered by a board of trustees within a new authority, with oversight by the Ministry of Finance.
The board would be composed of both government executives and financial experts and operators, with the aim to strike a balance between risk and growth when it comes to investing the money.
The money, including any dividends earned from investments, wouldn’t be subject to tax. The funds will be ring-fenced and prescribed to the child’s identity, which means they would be protected if their parents are subjected to a garnishee order.
Beneficiaries would be able to access the funds upon turning 20, but only for specific purposes such as covering living expenses while studying abroad, making a down payment on a property in Malta or Gozo, or obtaining seed funding to start a business.
In exceptional health cases, they would also be able to access this money before they turn 20.
The logic behind Borg’s proposal, which has already been tested in countries like South Korea and Singapore, is that the government shouldn’t simply incentivise people to have more children but invest in their long-term future.
The PN said it unveiled this proposal following discussion with financial experts, sociologists, anthropologists, academics and people who work in the field of social justice.
Cover photo: Alex Borg
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