IPO mulled for Maharlika
A four-man team made up of financial experts and a member of the House of Representatives met after Christmas Day to draft a financing program for the MIF.
Proponents of what could be the country’s first sovereign wealth fund are exploring the possibility of offering the proposed Maharlika Investment Fund for public ownership through the stock market, a source familiar with the planned money pool said.
According to the source, a fourman team made up of financial experts and a member of the House of Representatives met after Christmas Day to draft a financing program for the MIF.
The team then presented the proposal to President Ferdinand “Bongbong” Marcos Jr. last Wednesday in time for his trip to Switzerland to take part in the World Economic Forum in Davos.
The source said a prominent business figure brought together the experts to study the best way for the MIF to take off and the IPO option became a key proposal.
The President hopes to use his WEF trip to attract more investments and promote beneficial trade for the country.
Marcos will be the only Association of Southeast Asian Nations leader and one of two Asian heads of state to attend this year’s WEF, Foreign Affairs Undersecretary Carlos Sorreta said.
Sorreta said Marcos will be in a “wonderful position” to show that the Philippines, as well as the ASEAN and the East Asia region, could be the “engine of growth for the world economy.”
The government plans a “soft launch” of the MIF during the forum at which top international government and business leaders will converge. Awareness of the MIF would be crucial in boosting investments and economic growth, Sorreta said.
Great venue for wealth fund
The WEF will be a “great venue” to present the proposed MIF, according to the DFA official.
“Global and business leaders will be there and they will hear it directly from the President, what fundamentals we have that we decided that we should have a sovereign wealth fund,” he said.
“It’s really more of a soft launch to introduce it. I understand that it is evolving. We have the fullest respect for the congressional process and the open hearings that they’re holding,” Sorreta added.
The House of Representatives on 15 December approved on third and final reading House Bill 6608 or the MIF bill after it was certified as urgent by no less than the President.
Under the proposed measure, the MIF will be financed through pooled funds from state-owned financial institutions and state pension funds.
While Congress has yet to come up with the final version of the bill, the President aims to “inform the world” that the Philippines intends to have a fund to indicate its readiness for foreign investments, the Palace indicated.
Critics have petitioned against the passage of the MIF bill, saying it was not feasible due to a ballooning budget deficit and external debts.
The WEF, established in 1971, serves as an international organization for public-private cooperation.
The WEF’s theme is “Cooperation in A Fragmented World,” and it’s where the government wants to present the Philippines as an important player in bringing together the fragmented parts of the world.
8th trip as President
Marcos departs today on his eighth overseas trip since assuming office six months ago.
At the invitation of WEF founder Klaus Martin Schwab, Marcos will be in Davos from 15 to 20 January, barely one week after returning from his state visit to China.
According to the WEF, South Korean President Yoon Suk Yeol is also set to attend the annual meeting, making him and Marcos the only Asian leaders at the annual event.
As the only ASEAN leader, Marcos will try to convince global leaders and potential investors that the region can be the “engine of growth for the world economy.”
World Health Organization Director-General Tedros Adhanom Ghebreyesus is among those who confirmed their attendance at the WEF. He is expected to tackle “vaccine access for all,” according to WEF.
UNICEF Executive Director Catherine Russell, NATO Secretary-General Jens Stoltenberg, and United Nations Secretary-General Antonio Guterres have also confirmed their attendance.
Aside from DFA officials, Department of Trade and Industry Secretary Alfredo Pascual, Department of Finance Secretary Benjamin Diokno, Department of Migrant Workers Secretary Susan Ople, and Presidential Communications Office Secretary Cheloy Velicaria-Garafil are among the members of the Philippine delegation to the WEF.