PBBM makes a strong pitch for Maharlika Investment Fund

PH | PBBM makes a strong pitch for Maharlika Investment Fund | MANILA – President Ferdinand R. Marcos Jr. made a strong case for the Maharlika Investment Fund (MIF), which is the country’s first sovereign wealth fund, in front of the top business leaders and investors at the 10th Asia Summit in Singapore on Wednesday.

In a keynote speech, Marcos told a small group of CEOs and investors that the MIF would help speed up the development of the top sectors and drive economic growth in the Philippines.

“The fund (MIF) is meant to bring together funds that can be invested from government financial institutions to help drive economic growth through strategic investments both at home and abroad,” Marcos said.

Marcos said that the MIF would be used to improve many parts of the country, including agriculture, roads, energy, and health care.

He said that building up the country’s infrastructure is a key part of the country’s growth.

“Our dedication to connectivity is unwavering. Our Build, Better, More Infrastructure Program is full of ambitious projects that make trade and investment more possible. “Our ports, transportation networks, and energy facilities are set to improve business operations and make it easier to trade with the rest of the world,” Marcos said.

Marcos also said that it was important to improve the agriculture sector so that Filipinos could get enough and cheap food.

He said that the Philippine government plans to make public-private partnerships and government-to-government deals “without a worrisome increase in our borrowings and, hopefully, with enough money.”

“So, those are the ways that we can see. This money will be used to improve infrastructure and power growth. Again, these major parts are healthcare and all of the other areas that we have identified as important. So, to make a list, we need to change agriculture, energy, the ease of doing business, and the tax system,” Marcos said.

“I said the word change. I don’t use the word “recovery” because we have to change the economy into something different than what it was before,” he said.

Marcos said that MIF would allow the Philippines to spend more without having to borrow more money. He said this while acknowledging that the Philippines has “high” debt.

Marcos made sure that the MIF is not run by the government, but by professional fund managers. This is to make sure that the country’s wealth fund is managed well.

“Because when politicians get involved, the choices are no longer just about money, and I think that causes failure. And that doesn’t make it good handling of the fund,” he said.

On July 18, Marcos signed Republic Act (RA) 19954, which created the MIF. The goal of the MIF is to make the best use of national funds by earning money to support the Marcos administration’s economic goals, which are set out in the Medium-Term Fiscal Framework, the 8-point Socioeconomic Agenda, and the Philippine Development Plan 2023-2028.

Under RA 11954, the MIF will be used to invest in a wide range of assets, like foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate, and high-impact infrastructure projects that help achieve sustainable development.

Setting up the MIF will give the government a long-term source of income and help the national budget by giving the government more money for other projects that are important to it.

The Maharlika Investment Corporation (MIC), which has an approved capital stock of PHP500 billion, is the only organization that can raise and use the MIF to invest in deals that will give the best returns on investments. (via PNA)