NATIONAL
Advocates Philippines
Maharlika Investment Fund Signed Into Law
Photo credit: RTVM
President Ferdinand R. Marcos Jr. signed the Maharlika Investment Fund (MIF) Act of 2023 on Tuesday. This marks the establishment of the country's first-ever sovereign wealth fund, aimed at supporting the Administration's economic goals.
During the signing ceremony, President Marcos expressed his optimism about the MIF, stating, "The MIF is a bold step towards our country's meaningful economic transformation. Just as we are recovering from the adverse effects of the pandemic, we are now ready to enter a new age of sustainable progress, robust stability, and broad-based empowerment."
The signing of Republic Act (RA) No. 11954 into law empowers the country to invest in crucial sectors such as agriculture, infrastructure, digitalization, and value chain strengthening. By pooling together non-debt financial resources from government financing institutions, the fund ensures that other lending obligations under their respective mandates are not crowded out.
The MIF also has the potential to attract external financing, thereby reducing the government's burden of financing infrastructure solely through borrowings and taxes. President Marcos highlighted, "The establishment of a sovereign wealth fund will widen the government's fiscal space and ease pressure in financing public infrastructure projects."
The President acknowledged that maintaining the integrity of the fund and utilizing its gains for tangible changes would be the real challenge. However, he assured the public that the fund would be managed by highly competent personnel with a proven track record and outstanding integrity. Transparency, accountability, and good governance are paramount in this endeavor, he emphasized.
Following the signing of the MIF Act, the Administration will focus on preparing the implementing rules and regulations (IRR) for the creation of the Maharlika Investments Corp. (MIC). The MIC will serve as the sole vehicle for mobilizing and utilizing the MIF for investments. It is expected to have a paid-up capital of at least PhP75 billion this year, with PhP50 billion sourced from the Land Bank of the Philippines (LBP) and PhP25 billion from the Development Bank of the Philippines.
The MIF will be diversified across various assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate, high-impact infrastructure projects, and projects related to sustainable development. Prominent figures who witnessed the signing of the MIC included Senate President Juan Miguel Zubiri, Speaker Ferdinand Martin Romualdez, Executive Secretary Lucas Bersamin, Finance Secretary Benjamin Diokno, and former president, now Pampanga Rep. Gloria Macapagal Arroyo.
During the signing ceremony, President Marcos expressed his optimism about the MIF, stating, "The MIF is a bold step towards our country's meaningful economic transformation. Just as we are recovering from the adverse effects of the pandemic, we are now ready to enter a new age of sustainable progress, robust stability, and broad-based empowerment."
The signing of Republic Act (RA) No. 11954 into law empowers the country to invest in crucial sectors such as agriculture, infrastructure, digitalization, and value chain strengthening. By pooling together non-debt financial resources from government financing institutions, the fund ensures that other lending obligations under their respective mandates are not crowded out.
The MIF also has the potential to attract external financing, thereby reducing the government's burden of financing infrastructure solely through borrowings and taxes. President Marcos highlighted, "The establishment of a sovereign wealth fund will widen the government's fiscal space and ease pressure in financing public infrastructure projects."
The President acknowledged that maintaining the integrity of the fund and utilizing its gains for tangible changes would be the real challenge. However, he assured the public that the fund would be managed by highly competent personnel with a proven track record and outstanding integrity. Transparency, accountability, and good governance are paramount in this endeavor, he emphasized.
Following the signing of the MIF Act, the Administration will focus on preparing the implementing rules and regulations (IRR) for the creation of the Maharlika Investments Corp. (MIC). The MIC will serve as the sole vehicle for mobilizing and utilizing the MIF for investments. It is expected to have a paid-up capital of at least PhP75 billion this year, with PhP50 billion sourced from the Land Bank of the Philippines (LBP) and PhP25 billion from the Development Bank of the Philippines.
The MIF will be diversified across various assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate, high-impact infrastructure projects, and projects related to sustainable development. Prominent figures who witnessed the signing of the MIC included Senate President Juan Miguel Zubiri, Speaker Ferdinand Martin Romualdez, Executive Secretary Lucas Bersamin, Finance Secretary Benjamin Diokno, and former president, now Pampanga Rep. Gloria Macapagal Arroyo.
Jul 18, 2023
