MANILA, Philippines — The government’s economic team is hoping that the Maharlika Investment Fund (MIF) will be enacted into law before President Marcos delivers his second State of the Nation Address (SONA) in July.
As the Senate resumes deliberations, Finance Secretary and economic team head Benjamin Diokno is seeking the approval of the Senate version on third reading before the session adjourns on June 2.
“The MIF is making significant progress at the Senate, and we hope to see it signed into law before the President’s second SONA on July 24,” Diokno said.
The MIF is proposed to be the country’s first sovereign wealth fund – an idea that was first floated at the end of November last year.
After just a month of hearings, the House of Representatives approved its version before the Christmas break.
During the latest deliberations, MIF sponsor Sen. Mark Villar explained that the MIF could generate bigger returns for the government, setting it apart from other government-owned or -controlled corporations.
Villar noted that the MIF returns would maximize the government’s assets and generate revenues that would be used to invest in flagship projects.
Of late, the government’s funding sources for big-ticket projects come from foreign loans and internal funds through the annual national budget.
The MIF is also being projected to collect equity investments from foreign and institutional investors.
Sen. Grace Poe sought clarification on the qualifications and standards for the nine members of the board of directors, which will be elaborated in the implementing rules and regulations once the law is enacted.
Under the current bill, however, the Advisory Board, composed of the Department of Budget and Management, National Economic and Development Authority and Bureau of the Treasury, is mandated to recommend to the President the appointment of members of the board of directors.
The latest form of the MIF will still get capitalization from the investible funds of the Land Bank of the Philippines, Development Bank of the Philippines and dividend remittances of the Bangko Sentral ng Pilipinas.
Other sources, such as the Philippine Amusement and Gaming Corp.’s income, proceeds from privatization and the transfer of assets, royalties and special assessments, remain.
The MIF is expected to adhere to the Santiago Principles, which pertain to the generally accepted principles and practices to ensure the effective operations of sovereign wealth funds globally, and will be governed by relevant investment and risk management guidelines.