Philippines’ Manila The Maharlika Investment Fund will be operational by the end of 2023, according to President Ferdinand “Bongbong” Marcos Jr., who made this announcement on Thursday. This is despite the government’s ongoing efforts to optimize and improve the sovereign wealth fund.
“The Maharlika Fund is coming together quickly. However, what I have done is identify more areas for improvement, particularly with regard to the Maharlika Fund’s organizational structure, Marcos stated on Thursday.
“We’re committed to having the Maharlika Fund operational before the end of the year, and the concept of the fund as a sovereign fund remains sound,” he continued.
Reports indicating that the Maharlika Investment Fund was placed on hold alarmed the CEO.
“On the contrary,” he remarked.
However, according to a memo dated October 12 by Executive Secretary Lucas Bersamin, the president gave the treasurer of the Philippines instructions to halt the implementation of the laws establishing the sovereign wealth fund in cooperation with the Land Bank and Development Bank of the Philippines.
According to Bersamin, the CEO wants to examine the IRR to make sure there are adequate protections for accountability and transparency.
But Marcos clarified that the action shouldn’t be seen as a “judgment on the rightness or wrongness” of the Maharlika Fund.
Conversely, we’re just trying to figure out how to make this as close to ideal and perfect as we can. And this has been discussed with those who will be involved with the finances as well as our economic management,” he stated.
Presenting MIF to the Middle East
Prior to departing for Riyadh, Saudi Arabia, on Friday to take part in the ASEAN-Gulf Cooperation Council Summit, Marcos made the statement.
“One of the most important aspects” of his trip, according to the president, is exposing the sovereign wealth fund to the Middle East.
The administration says that the bill establishing the nation’s first sovereign wealth fund, which Marcos signed into law in July, will accelerate economic growth.
Opposition lawmakers, academics, industry associations, and economists are among the critics who have cautioned that it will be easily abused.
Aquilino “Koko” Pimentel III, the Senate Minority Leader, and Bayan Muna filed a petition before the Supreme Court to declare the Maharlika Investment Fund Act of 2023 unconstitutional and invalid, arguing that the law is a “disaster waiting to happen.”
