The happy news is... newborns can see! Yay! Just that to them. everything is very blurry at first. They can't see things as clearly as you'd like them to. This is because their eyes and visual system are not fully developed. And it's during the first few months of their lives that significant improvement takes places. However, its essential to note that few out of every child is the same and some may achieve certain points of reference at various ages.
Source: Dr. Poh Eu Ping MD (USM) M Surgical (OPH)(UKM), Consultant Ophthalmologist with special interest in Paediatric Ophthalmology