MANILA, Philippines — State-run pension fund Social Security System (SSS) plans to invest some of its resources into infrastructure projects in a bid to widen its investment portfolio and contribute to the government’s overall thrust.
SSS president and CEO Michael Regino said the fund, alongside its counterpart Government Service Insurance System (GSIS), is heeding the call of Finance Secretary Benjamin Diokno to invest in infrastructure.
Diokno earlier said this in line with the Build Better More infrastructure program of the Marcos administration.
Regino said SSS is now in talks with GSIS regarding the details on how to invest in the Philippine infrastructure plan.
Unlike GSIS that has an existing infrastructure investment portfolio, SSS does not have one at present.
“We have to be in sync with the direction of the government. Infrastructure is not limited to DPWH (Department of Public Works and Highways) projects, there can be improvement in broadband, in terms of communication and area on satellite,” Regino told reporters.
“Anything to improve the overall infrastructure of the Philippines, we definitely would want to invest on that because that will be the one that will give us the best returns as a nation,” he said.
Regino has yet to provide how much the SSS can invest on infrastructure but he maintained that the pension fund has enough funds that can be allocated.
“We have funds from equity, if we feel that in the future we need more for the infrastructure fund, we would sell some of our stocks in the capital market and move to infrastructure,” Regino said.
“We also have a lot in government security, especially now, a lot are buying government security, we can sell these to help,” he said.
Regino maintained that such a plan is targeted to materialize next year.
Last July, GSIS, the pension fund for government workers and retirees, said it is looking for opportunities to invest in local projects to strengthen its mandate and boost its portfolio.
GSIS president and general manager Wick Veloso noted that possible sectors include power, water, telecommunications and transportation, among others.
GSIS has P104 billion in its existing investment pool that can be tapped. Of that, P35 billion has already been poured into a combination of private equity and infrastructure.
Under the law, GSIS is mandated to provide insurance cover to all government assets and properties with insurable interests.