Maharlika fund to invest P35 billion for projects in 2024

MANILA, Philippines — State-run Maharlika Investment Corp. (MIC) will invest P35 billion in various projects this year, particularly on energy, mass housing and transportation.

MIC president and CEO Rafael Consing Jr. said the sovereign wealth fund recently secured the approval of the Department of Budget and Management (DBM) for its capital expenditures, operating expenditures and investments.

This represents almost 25 percent of the P125 billion initial capitalization of the wealth fund.

“That’s the amount of commitments that we can raise. At least not necessarily deploy, but commit. Because the reality is that you can’t really deploy until you’ve gone through all the diligence,” Consing told reporters.

“The deployment might occur in 2025, but the commitments will all be there this year,” he said.

As such, the MIC has partnered with the Bases Conversion and Development Authority to explore investment opportunities within BCDA properties, including Clark Freeport and Special Economic Zone.

MIC and BCDA inked a memorandum of understanding to “further discuss, share knowledge and explore potential collaboration opportunities that will lead to a development of a feasibility study report.”

The MOU will allow MIC to start looking at five particular projects including the housing project in New Clark City, first phase of the expansion of the Clark International Airport, the development of Poro Point Port, the Clark Integrated Public Transport System and the Clark Central Business District.

BCDA president and CEO Joshua Bingcang said the five projects would entail an investment of around $4 billion. Of the amount, 60 percent can be shouldered by the private sector and the remaining 40 percent can be discussed among government partners, one of which is MIC.

“MIC’s participation is a vote of approval and confidence in our projects that we can show to our investors abroad that the national government is behind us in developing these programs,” Bingcang told reporters.

“But of course, we want to make sure that every investment that they will put in BCDA will give the necessary returns as part of their money to be reinvested,” he said.

Consing said the MIC is ready to commit funds following the approval of the DBM.

MIC has placed a risk limit of 15 percent for every sector that it would invest in.

With its P35-billion capital for the year, MIC can pour in up to P5.25 billion in every sector of interest.

Meanwhile, MIC chairman and Finance Secretary Ralph Recto said the MIC-BCDA partnership would unlock opportunities to enhance the quality of life and generate more jobs for Filipinos.

“With the wide-ranging areas to be explored by this agreement, we will be creating more sustainable urban communities that not only enhance the quality of life for Filipinos but also generate numerous job opportunities for them,” Recto said.