The Maharlika Investment Fund has been signed into law last July 18, making it the first sovereign investment fund created in the Philippines.
President Ferdinand Marcos Jr. officially established the then-proposed Maharlika Wealth Fund by signing Senate Bill No. 2020 and House Bill No. 6608 at the historical Rizal Hall of the Malacañang Palace last week. Despite blatant objections and calls for emendations from opposing parties, Marcos and the Senate filled with Marcos allies still continued to push the controversial development allocation, effectively creating the Maharlika Investment Fund (MIF) just in time before his second State of the Nation Address.
The Role Of The Maharlika Fund In The Development of the Philippines Infrastructure Sector
Image from PhilStar
As President Ferdinand Marcos Jr. remarked during the affair, he believes that the MIF will be the saving grace for the 194 infrastructure projects approved by the NEDA Board.
“It [MIF] is a crucial undertaking. It will support our overall goal of 6.5 to 8% gross domestic product growth in the medium term. And through the fund, we will accelerate the implementation of the 194 NEDA Board-approved flagship infrastructure projects,” Marcos said during the conference.
Although the Maharlika Investment Fund has raised many eyebrows and serious qualms due to the vagueness and inconsistency of the proposal, the President has seemingly shown no hesitation in signing it into law. Even before an actual proposal was produced, Marcos had already expressed clear intentions in signing it into law, even “soft-launching” the fund in Switzerland last January amidst the raised concerns surrounding the concept.
Image from ABS-CBN
Volitions on using the MIF to continue the current administration’s infrastructure projects did not subside, and Marcos, along with his friends, family, and allies with secured seats in the government, had made sure that the fund will be passed. Currently, an actual, clear plan on exactly how the fund will be used in which of the 194 NEDA-approved projects is still to be conveyed to the public, although it was already announced that an unspecified portion of the fund will be used in providing financial support to completing the infrastructure projects under the Build, Better, More program.
The Future Of The Local Construction Industry With MIF
While exactly how the Maharlika Investment Fund will fund exactly which BBM projects is still unclarified, Marcos insisted that the development fund is a much-needed national asset that will finally bolster the local infrastructure industry and make it an attractive investment destination for both local and international companies. In addition, the fund is planned to be used to create more local jobs, provide an avenue for the Philippine government to make its own investments, and improve the welfare of its citizens.
According to Marcos, the Maharlika Fund is more than just the economic expansion of the Philippines, but a fund that carries the future of the people he serves.
“At its core, the MIF carries the dream and aspirations of the Filipino people,” Marcos said.
With the Maharlika Investment Fund, the current government promises to complete various infrastructure projects that will improve the local economy, build bridges, and enhance the accessibility of the country to both local and international businesses.
References:
- DBM. (2023, July 18). PBBM SIGNS MAHARLIKA INVESTMENT FUND ACT; Philippines’ First-Ever Sovereign Investment Fund Established. DBM. Retrieved July 25, 2023, from https://www.dbm.gov.ph/index.php/secretary-s-corner/press-releases/list-of-press-releases/2828-pbbm-signs-maharlika-investment-fund-act
- Rappler. (2023, July 18). Marcos signs Maharlika bill into law. Rappler. Retrieved July 25, 2023, from https://www.rappler.com/nation/marcos-jr-signs-maharlika-fund-bill/
- Romero, S. E. (2023, July 24). MIF: A poorly designed law. Inquirer.net. Retrieved July 25, 2023, from https://opinion.inquirer.net/165027/mif-a-poorly-designed-law
- Rosit, M. (2023, July 18). PBBM signs Maharlika Investment Fund Act, PH’s first-ever sovereign wealth fund. Philippine Information Agency. Retrieved July 25, 2023, from https://pia.gov.ph/news/2023/07/18/pbbm-signs-maharlika-investment-fund-act-phs-first-ever-sovereign-wealth-fund
