SPEAKER Ferdinand Martin G. Romualdez on Wednesday hailed President Ferdinand R. Marcos, Jr.’s decision to insulate Maharlika Investment Fund’s handling from politics, saying it is a prudent move that augurs well for the success of the country’s first-ever sovereign wealth fund.
On Tuesday, President Marcos bared that he rejected proposals for him or the Secretary of Finance to chair the MIF, saying that it must be run by competent and independent financial managers to insulate it from political interference.
“President Marcos’ demand for MIF investment decisions and management to be predicated solely on sound financial and business practices manifests his resolve to ensure the fund is adequately safeguarded and would grow to achieve its purpose,” said Romualdez who is one of the principal authors of the House version of the bill creating the MIF.
“It is a prudent move on the part of the President that would bolster its potential to achieve its purpose of mobilizing additional funds without the need for additional borrowings or taxes to accelerate the implementation of flagship infrastructure projects meant to sustain the country’s robust growth,” he added.
Under RA 11954 or the Act Establishing the MIF, which the President signed into law Tuesday, the Secretary of Finance is merely ex officio chairperson and will not run the Fund. It will be governed by the nine-member Maharlika Investment Corporation (MIC) chaired by an Independent Director.
Romualdez noted that in a recent meeting with new Singaporean Ambassador Constance See, the latter noted that “sovereign wealth funds, when managed properly can really promote economic development, increase revenue, and boost national savings.”
He recounted that according to the envoy, the city-state’s sovereign wealth funds, namely GIC (Government of Singapore Investment Corporation) Private Limited and Temasek, along with its Central Bank remit dividends amounting to about 20 percent of the country’s national budget.
“With competent managers of proven track record and unquestioned integrity running the MIF, I am confident that it would eventually provide significant contributions to widen our fiscal space and finance projects that would create jobs and uplift the lives of our people,” Romualdez said.
Following the signing of RA 11954, Malacanang said the stage is now set for the preparation of the implementing rules and regulations (IRR) for the creation of the MIC, which will be the sole vehicle for mobilizing and utilizing the MIF for investments.
As envisioned in the law, the Fund will be invested in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate and high-impact infrastructure projects, and projects related to sustainable development. (END)
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