MANILA, Philippines — One way for the government to prove that the proposed Maharlika Investment Fund (MIF) will directly benefit Filipinos is by venturing into the Marcos administration’s “Build Better More” infrastructure projects, a Mindanao lawmaker suggested yesterday.
Rep. Johnny Pimentel of Surigao del Sur said putting the multibillion-peso funds to infrastructure development projects, especially now that the country is on the way to recovering from the pandemic, would create jobs for Filipinos and boost trade even more.
This is the best or ideal situation if it were up to him, rather than “merely hold passive assets such as fixed-income instruments, equities and bonds” of the sovereign wealth fund – the Philippines’ first – that the House of Representatives had approved last December.
“If we look at Indonesia, they are actually using their newly established sovereign wealth fund to attract private partners that can co-invest in developing highly productive infrastructure assets,” Pimentel said.
“New railways, toll expressways and airports create more jobs that benefit low-income Filipino families. They also expand the markets for small and medium-sized enterprises that comprise 99 percent of all registered businesses in the country,” he added.
Besides improving the mobility of people and goods, these projects also provide recurring revenue streams from train fares, toll levies, terminal fees as well as leasing and retail opportunities, Pimentel said.
“In fact, some of the largest Filipino private conglomerates have found it gainful to embark on tollways and rail transit systems, while others are going into aviation,” he said, referring to San Miguel Corp., Metro Pacific Investments Corp. and Aboitiz Equity Ventures Inc.
“We are confident the Senate will pass the bill after giving it a fair hearing and putting in further improvements,” Pimentel said.
President Marcos earlier certified the bill as urgent.
Under House Bill 6608, the MIF may invest in a wide range of real and financial assets to generate long-term social wealth savings and to fuel national economic development.
The MIF’s permissible investments include joint ventures and infrastructure projects.
At least 20 percent of the net profits of the Maharlika Investment Corp. – the entity that would manage the MIF – will be remitted to the national treasury “to be earmarked for social welfare projects.”
Nearly 50 countries around the world have established sovereign wealth funds, many of which are funded by surplus government revenues or reserves.