MIF could venture into infra development solutions–lawmaker

INSTEAD of merely holding passive assets such as fixed-income instruments, equities and bonds, the planned state-run Maharlika Investment Fund (MIF) could venture into infrastructure development solutions, according to a lawmaker.

Surigao del Sur Rep. Johnny Pimentel, a vice chairperson of the House Committee on Good Government and Public Accountability, said Maharlika may target infrastructure development solutions to boost trade and create jobs.

“If we look at Indonesia, they are actually using their newly established sovereign wealth fund to attract private partners that can coinvest in developing highly productive infrastructure assets,” Pimentel said in a statement on Monday.

“New railways, toll expressways and airports create more jobs that benefit low-income Filipino families. They also expand the markets for small and medium-sized enterprises that comprise 99 percent of all registered businesses in the country,” Pimentel said.

Besides improving the mobility of people and goods, these projects also provide recurring revenue streams from train fares, toll levies, terminal fees as well as leasing and retail opportunities, according to Pimentel.

“In fact, some of the largest Filipino private conglomerates have found it gainful to embark on tollways and rail transit systems, while others are going into aviation,” Pimentel said, referring to the likes of San Miguel Corp., Metro Pacific Investments Corp. and Aboitiz Equity Ventures Inc.

In December, the House of Representatives passed on third and final reading the bill seeking to establish the MIF as the Philippines’ first sovereign wealth fund.

“We are confident the Senate will pass the bill after giving it a fair hearing and putting in further improvements,” Pimentel said.

President Ferdinand Marcos Jr. had earlier certified the bill as urgent.

Under House Bill No. 6608, the MIF may invest in a wide range of real and financial assets to generate long-term social wealth savings and to fuel national economic development.

The MIF’S permissible investments include joint ventures and infrastructure projects.

At least 25 percent of the net profits of the Maharlika Investment Corp. – the entity that will manage the MIF – would be remitted to the national treasury “to be earmarked for social welfare projects.”

Under Section 43 of the approved HB 6608, all documents of the MIF and the Maharlika Investment Corporation—the independent body created to manage the fund—shall be open, available, and accessible to the public.

Nearly 50 countries around the world have established sovereign wealth funds, many of which are funded by surplus government revenues or reser ves.