The administration will present the Maharlika Investment Fund to Malaysian investors during President Ferdinand Marcos Jr.’s three-day state visit to Malaysia starting July 25, a day after his second State of the Nation Address (SONA).
“[MIF] will be a very, very important vehicle to attract more resources and investments into the country, to supplement our resources that are provided for in the national budget for developmental initiatives, infrastructure, in the power and agriculture sectors,” Speaker Martin Romualdez said on Sunday.
Romualdez said the sovereign wealth fund is “not only beneficial but [also] necessary.”
“[We have a] growing economy that needs to entice foreign investors to ramp up the improving and recovering local economy,” the Speaker added.
Employers Confederation of the Philippines (ECOP) president Sergio Ortiz-Luis Jr., for his part, said he is optimistic about the operations of Maharlika.
“Just give it a chance because at the end of the day, when it becomes successful, it is the success of the country. When we criticize it immediately, this can hinder its success. Because you know local and foreign investors will not invest their money if they see that we ourselves don’t believe in it. I think let’s give the benefit of the doubt,” Ortiz-Luis said.
He said there are many countries that have successfully established sovereign wealth funds.
Ortiz-Luis, who is also the president of the Philippine Exporters Confederation, Inc. (PHILEXPORT), said many local firms are keen on putting their money in the MIF while several tycoons are also willing to invest in it.
The fund is envisioned to be invested in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate and high-impact infrastructure projects, and projects that contribute to the attainment of sustainable development.
Unlike other government-owned or -controlled corporations (GOCCs), the MIF will be able to maximize government assets through its investments in projects that generate bigger returns.
Finance Secretary Benjamin Diokno said he expects the MIF to be operational before the end of the year.
The Maharlika Investment Corporation (MIC) will be created to serve as the investment body responsible for the overall governance and management of the fund. It will be governed by a Board of Directors with nine members chaired by the Secretary of Finance.
