The Maharlika Investment Fund (MF), also known as the Maharlika Wealth Fund (MWF), is a proposed sovereign wealth fund for the Philippines. The government will use it to invest in a wide range of outlets, such as currencies, fixed income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure projects, among others. On behalf of the Economy Team, Budget Secretary Pangandaman shared her optimism that the MWF will help the administration achieve its Agenda for Prosperity. A total of Php 250 billion in seed investment for the MWF will come from government financial institutions (GFIs) such as GSIS, SSS, Landbank of the Philippines and Development Bank of the Philippines. This will be supplemented by annual contributions from the BSP, DOF and other sources.
Maharlika Investment Fund Bill
Yesterday, Manila, Philippines President Ferdinand signed the Maharlika Investment Fund into law, creating the country’s first sovereign wealth fund despite warnings from some experts that the MIF is prone to mismanagement and risk. Republic Law (RA) 11954 creates the MIF, which aims to become a vehicle for making strategic and profitable investments in key sectors. To speed up the implementation of 194 infrastructure projects approved by the National Economic and Development Authority (NEDA), the government hopes the wealth fund will become an instrument.
During the signing of the MIF bill in Malacañang, Marcos allayed fears that the endowment fund would be politicized or misused, saying it is needed to finance investments that would make the Philippines competitive in a post-pandemic economy. The president said: “Let’s make sure the fund is well managed. Let’s make sure that the decisions that are being made for the fund are not political decisions, that they are financial decisions because that’s what the fund is. It is basically a fund that we will continue to invest in. Let’s make sure they are professional.” He also added: “I maintain that we have some of the best economic managers, both in the private and government sectors, that we can count on to properly manage this fund.”
On July 18, several groups were still expressing disappointment at President Marcos’s decision to sign the law creating the MIF, although the approval was not unexpected. The new law means less funding for social services, including housing, healthcare and education, for the Taumbayan Ayaw Sa Maharlika Fund Network Alliance, or TAMA NA. Noting that the MIF does not guarantee benefits to Filipinos, he likened it to publicly funded gambling. .
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Source: vtt.edu.vn