President Ferdinand R. Marcos, Jr. signs into law the bill establishing the Maharlika Investment Fund or R.A. 11954 in Malacanang Palace on Tuesday morning. Among those who witnessed the event are (from right) Speaker Ferdinand Martin G. Romualdez, Sen. Mark Villar, (from left) Senate President Juan Miguel “Migz” Zubiri and Executive Secretary Lucas Bersamin (partly hidden).
SPEAKER Ferdinand Martin G. Romualdez today welcomed the signing of the Maharlika Investment Fund (MIF) Act, saying the MIF is intended to be an additional vehicle for financing big-ticket infrastructure projects without incurring more foreign debt or having to impose new taxes on our citizens.
Romualdez, one of the principal authors of the House version of the MIF, was among the government officials who witnessed President Ferdinand R. Marcos, Jr. sign the new law at Malacanang Palace.
“As an additional vehicle for financing, the MIF is expected to widen the fiscal space in the near- to medium-term as it reduces heavy reliance on local funds and development assistance as the main financing mechanisms for infrastructure projects,” he said.
“It is envisioned to enable the government to execute and sustain high-impact and long-term economic development programs and projects without imposing new or higher taxes,” Romualdez added.
He said using the MIF as an alternative infrastructure funding source would likewise mean allocating more funds in the annual national budget for other vital social services like education and health.
“The MIF is not only beneficial but necessary at this point in time. While the Philippines can offer investment opportunities, given that we are still a growing economy, we see that the cost of debt has risen, making the need to explore other vehicles to attract equity financing such as Maharlika Investment Corp. (MIC)/MIF urgent,” he said.
“The MIC/MIF is an investment for the future that we need to start building now. It is an ideal vehicle that is well-positioned to bring in investments as the Philippine economic outlook remains robust amid the global economic slowdown,” the House leader added.
He pointed out that international investors have already expressed interest in investing in the Fund, such as the Japan Bank for International Cooperation (JBIC) and several US companies.
“Certainly, there will be more interest once the MIF is officially launched. These investments mean more development projects in various parts of the country, more jobs and livelihood for the Filipinos, and a better future for generations to come,” he stressed.
Speaker Romualdez said he expected the MIF Act to be one of the landmark pieces of legislation passed by the 19th Congress.
“The Fund intends to allow for profitable investment development projects while also ensuring that there is flexibility in the market activities of the MIC/MIF,” he said.
