Maharlika Fund gains ‘huge interest’ in Wef–govt execs

THE proposed Maharlika Investment Fund (MIF) drew “huge interest” from investors at the 2023 World economic Forum (WEF), according to Senator Mark A. Villar.

Villar was among the members of the Philippine contingent. who accompanied President Ferdinand R. Marcos Jr. at the ongoing WEF in Davos, Switzerland.

The lawmaker noted that during the dialogues he attended at the WEF, the MIF helped attract potential investors to the country.

“Many were interested in the Philippines and the wealth fund since they saw that the fund can be utilized to hasten development in the country and of course as investors, they want to see that we are active in infrastructure and products or funds that can help the government,” Villar said in Filipino in an interview with the Presidential Communication Office (PCO).

The ongoing government effort to create the MIF through legislation was announced by Marcos during his opening remarks at the Philippines Country Strategy Dialog.

The President said the fund, which is patterned on the sovereign wealth fund of other countries, will provide additional revenue sources to the government, while providing new employment, improving public service, and decreasing “costs of economic activities.”

“Such a fund is one tool among many in our efforts to diversify our financial portfolio, which includes our existing institutions pursuing investment that will [not only] generate stable returns but also welfare effects spanning employment creation, improvement of public service and a decrease in costs of economic activities,” Marcos said in his opening remarks at the Philippines Country Strategy Dialogue.

Government officials earlier said the MIF will be tapped to ensure the country’s food and energy security as well as build more infrastructures.

Enormous opportunity

SPEAKER Ferdinand Martin G. Romualdez on Wednesday said the “huge interest” shown by global leaders in the Maharlika Investment Fund (MIF) during the WEF in Davos, Switzerland, buttresses the wisdom of fast-tracking the passage of the proposed measure creating the sovereign wealth fund in Congress.

In a statement, Romualdez said Marcos noted during the PCSD that the process of establishing the country’s first-ever sovereign wealth fund is under way.

Members of the Philippine delegation to Davos noted the “huge interest” shown by WEF attendees in the proposed MIF, said the speaker, echoing Villar.

“The swift passage of HB 6608, creating the MIF, enabled the President and the Philippine delegation to take advantage of the enormous opportunity to showcase the positive developments in our country and creative strategies to gain growth momentum,” Romualdez said.

The lawmaker credited the collective effort of the House, from the leadership to the opposition bloc, for the passage of HB 6608; featuring adequate safeguards to protect against corruption or abuse.

Cooperation, sacrifice

MARCOS has certified the bill as urgent. The House of Representatives approved it on third and final reading last December 15, 2022, and was transmitted to the Senate on December 19, 2022.

The Senate leadership said the MIF is among the priority legislations the chamber would work on when Congress resumes sessions this month.

“We could not have accomplished this challenging task without the cooperation and sacrifice of our members who exerted tremendous effort and diligence so we can conduct exhaustive debates and introduce necessary refinements to the Maharlika Investment Fund bill before our Christmas break,” Romualdez said.

HB 6608 is an independent fund that adheres to the principles of good governance, transparency and accountability, sourced from investible funds of select government financial institutions, contributions of the national government, declared dividends of the Bangko Sentral ng Pilipinas and other sources.

Also, Finance Secretary Benjamin E. Diokno, said the proposed MIF would help fund the Philippines’s infrastructure projects.

However, some business leaders opposed the creation of the MIF saying this could negatively affect the country’s credit rating. Labor groups are against it since their leaders say the MIF can take away government funds from much needed public services.