Marcos says Maharlika fund still on by end-2023

MANILA, Philippines — President Ferdinand “Bongbong” Marcos Jr. said Thursday that the Maharlika Investment Fund would be operational by the end of 2023 even as the government explores ways to optimize and refine the sovereign wealth fund. 

“The organization of the Maharlika Fund proceeds apace. And what I have done though, is that we have found more improvements we can make, specifically to the organizational structure of the Maharlika Fund,” Marcos said Thursday. 

“The concept of the Maharlika Fund as a sovereign fund remains a good one, and we’re committed to having it operational before the end of the year,” he added. 

The chief executive expressed alarm at reports suggesting that the Maharlika Investment Fund was put on hold.

“Quite the contrary,” he said. 

But in a memorandum dated October 12, Executive Secretary Lucas Bersamin said that the president directed the treasurer of the Philippines, in coordination with the Land Bank of the Philippines and the Development Bank of the Philippines, to suspend the implementation of the implementing rules and regulations of the law creating the sovereign wealth fund. 

The chief executive wanted to study the IRR to ensure there are enough safeguards for transparency and accountability, according to Bersamin. 

Marcos, however, said the move should not be misinterpreted as a “judgment on the rightness or wrongness” of the Maharlika Fund. 

“On the contrary, we are just finding ways to make this as close to perfect and ideal as possible… And this has been in consultation not only with our economic managers, but also with people who will be involved in the funds,” he said. 

Introducing MIF to Middle East 

Marcos made the statement before he left for Riyadh in Saudi Arabia to participate in the ASEAN-Gulf Cooperation Council Summit Friday. 

The president said that introducing the sovereign wealth fund to the Middle East is “one of the most important aspects” of his trip. 

Marcos signed in July the law creating the country’s first sovereign wealth fund, which the government claims will boost economic growth. 

However, critics — including business groups, academia, economists and opposition lawmakers — have warned it will be prone to misuse.

Bayan Muna and Senate Minority Leader Aquilino “Koko” Pimentel III filed in the Supreme Court a petition seeking to declare as unconstitutional and void the Maharlika Investment Fund Act of 2023, , saying the measure is a “disaster waiting to happen.”