Salceda to economic managers: Commit to MIF public listing

MANILA, Philippines — Albay Rep. Joey Salceda yesterday called on President Marcos’ economic managers to “commit to listing” the Maharlika Investment Fund (MIF) in the stock markets here and abroad.

Salceda, one of the economists in Congress, emphasized the need for international banks to join as “strategic partners” to ensure good corporate governance, oversight, and private sector funding for the MIF.

“The best way to make it work is through the capital markets. Make Maharlika a listed company. List it secondarily in other stock markets abroad,” asserted Salceda, who chairs the House technical working group on the MIF.

He noted the importance of engaging international financial institutions such as the World Bank and Asian Development Bank as strategic partners.

“That will increase oversight of the bank. More people will want more information before they invest. It will increase transparency,” he said.

Salceda, though, expressed concern that the final version of the MIF measure, which awaits the President’s signature, is “silent about public listing, but it implies it.”

He said it is necessary to include an explicit plan of action in the implementing rules and regulations to prevent the MIF from becoming just another government-owned and controlled corporation (GOCC).

“Listed companies are subject to stricter disclosure standards. That is why, in the House version, we expressly discussed and envisioned eventual public listing. It was in all the presentations. It was in all the discussions. And we believed it to be a very strong safeguard,” he added.

The safeguards are in place to purposely prepare the MIF for public listing, including the inclusion of independent directors, he said.

“And of course, we should allow the public to contribute to, and share in the success of the MIF. What better way than to list in the stock exchange?” Salceda said as he acknowledged the investment fund’s potential to finance major infrastructure projects.

The former presidential economic adviser also said that the MIF’s listing could potentially address the sluggish performance of the Philippine Stock Exchange Index as it carries an expected positive impact on the capital markets.

“Once Maharlika is introduced in the stock market, it could easily command a market capitalization of at least P780 billion,” he said.

“Government-Linked Companies tend to command a 20-30 percent premium in valuation, and I see no reason why that will be less of a case with Maharlika,” he added.

The proposed measures put forth by Salceda aim to ensure the successful establishment of the MIF, with the goal of enhancing transparency, attracting investors, and driving economic growth through infrastructure development. – Delon Porcalla, Cecille Suerte Felipe