MANILA, Philippines — After hitting pause on the implementation of the Maharlika Investment Fund, President Ferdinand “Bongbong” Marcos Jr. on Thursday encouraged business leaders in Saudi Arabia to invest in the country’s newly created sovereign wealth fund.
Addressing Saudi Arabia’s business leaders in a roundtable meeting, the president boasted of the Maharlika Investment Fund’s potential to “drive long-term economic development through increased investments in high-impact sectors.”
“We look forward to benefiting not just from Saudi investments, but also from the Kingdom’s extensive experience in managing such funds,” Marcos said.
Marcos flew to Saudi Arabia on Thursday to join other leaders from the Association of Southeast Asian Nations (ASEAN) and Gulf States in a summit where key issues on regional trade and digital transformation are expected to be discussed.
Finance Secretary Benjamin Diokno also touted the potential of the MIF to quicken the implementation of the country’s $153 billion worth of infrastructure projects, which can “offer high rates of return and offer larger socio-economic impact.”
"Safeguarding your funds and investments is a top priority. The Maharlika Investment Fund is founded on the Santiago principles reflecting appropriate governance and accountability mechanisms and the conduct of sound and prudent investment practices by sovereign wealth funds,” Diokno said.
Implementation of the Maharlika Investment Fund (MIF) was temporarily suspended this week after an October 12 memorandum from the president stated that more time is needed to further study its implementing rules and regulations (IRR) and ensure that safeguards are in place “for transparency and accountability.”
However, Marcos was also quick to dismiss speculation that the government was backpedaling on the MIF, which the president’s allies in Congress rushed to approve this year. Before leaving for Saudi Arabia, Marcos insisted that the delay in its implementation was meant to give the government time to improve its "organizational structure."
The president also said that introducing the sovereign wealth fund to the Middle East is “one of the most important aspects” of his trip.
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According to a news release from the Presidential Communications Office, Saudi Ministry of Investment Minister Khalid Al-Falih said that Saudi investors are “eager to learn from the Philippines’ finances being one of ASEAN’s most exciting markets.”
Business communities in Saudi Arabia also want to “learn more about the newly-launched Maharlika Investment Fund that you have launched under your administration,” Al-Falih said, addressing Marcos.
Critics of the MIF questioned the constitutionality of the fund before the Supreme Court (SC) last month, arguing that the president’s move to tag it as an urgent measure bypassed the 1987 Constitution.