Maharlika rules in place ahead of President Marcos signing

MANILA, Philippines — Crafting of the implementing rules and regulations (IRR) of the Maharlika Investment Fund is now in the final stage even as President Marcos has yet to sign the MIF bill into law as the government hurries to operate the Philippines’ first sovereign wealth fund.

In a television interview late Thursday night, Finance Secretary Benjamin Diokno said the IRR for the MIF is ready even as the final version of the bill has just been transmitted to the Office of the President this week.

Sought for clarification, Diokno told reporters that “the crafting of the IRR started right after the approval of the MIF bill.”

“It’s now in its final phase,” he said.

Congress approved the creation of the MIF in May. Critics are set to challenge it before the Supreme Court.

Under the bill, the IRR of the law should be promulgated by the national treasurer and founding government financial institutions within 90 days from the law’s effectivity.

“We don’t intend to use up the 90 days,” Diokno said.

Finance Undersecretary Maria Luwalhati Dorotan-Tiuseco said the crafting of the IRR was done in anticipation of the signing of the MIF and would not be released until the signing of the law.

A legal expert said a draft IRR is allowable as long as nothing is being enforced or implemented using the IRR as basis.

Diokno said the President may sign the MIF “in a week or two.”

Earlier, Diokno anticipated the MIF would be signed before the second State of the Nation Address of the President.

Marcos has said he would sign the bill as soon as he gets it.

“It requires a review and complete staff work (from the Office of the President). It’s now being circulated,” Diokno said.

He reiterated that the fund would be operational before the year ends. Already, the economic team is in search of people to lead the Maharlika Investment Corp.

“It is my responsibility to make it succeed and I am very optimistic. We have an array of projects with a high rate of return and that has gone through studies,” Diokno said.

The MIF aims to execute and sustain high-impact infrastructure and development projects, ease fiscal constraints, and maximize expected returns for the country’s investments.

The fund targets to invest funds that are available in government instrumentalities and utilize them for investment purposes on the basis of their individual mandates.

The economic team has said that the success of the MIF would allow the country to move away from its reliance on foreign and domestic loans to fund annual budgetary requirements.

It noted that investing in Maharlika can allow government financial institutions to obtain medium to long-term returns that are higher than their 10-year average return.

Based on the final version of the bill, the initial capitalization will consist of P50 billion from the Land Bank of the Philippines and P25 billion from the Development Bank of the Philippines.

The expected return of Maharlika is estimated to be around 8.6 percent on average, above Landbank’s 4.23 percent and DBP’s 3.59 percent.