The formation of a political party for youths can provide positive competition to existing parties, especially UMNO's Youth wing, says its former chief Khairy Jamaluddin.

He said the democratic system did not prevent any citizen from joining or forming a political party as long as no laws were broken.

"I think one of the foundations of our democratic country is free and open competition.

"Anybody is free to set-up any party and we must welcome them," he said at a press conference after launching the Social Impact Matching Grant here today.

He was commenting on the intention of former Parti Pribumi Bersatu Malaysia (Bersatu) Youth chief Syed Saddiq Abdul Rahman to form a youth-centric party.

Khairy, who is also Rembau MP, described the move as a signal to the existing political parties to focus on healthy competition.