NewsMaharlika Investment Fund (MIF) Signed Into Law

July 18, 2023

President Ferdinand R. Marcos Jr. signed a bill on Tuesday that officially establishes the Maharlika Investment Fund (MIF), the Philippines’ first sovereign wealth fund. The signing took place at the Kalayaan Hall of Malacañang Palace in Manila.

In his keynote speech, President Marcos emphasized that the MIF aims to drive economic development in the country. He stated that the fund would provide seed money for investments, attract foreign investments, and eliminate the need for additional borrowing. President Marcos expressed his commitment to ensuring the professional management of the MIF, emphasizing that financial decisions, rather than political ones, would guide its operations.

The creation of the MIF aligns with the Medium-Term Fiscal Framework, the 8-point Socioeconomic Agenda, and the Philippine Development Plan 2023-2028, which outline the economic goals of the Marcos administration. The MIF will optimize national funds and support the government’s priority programs by generating returns.

Budget Secretary Amenah Pangandaman welcomed the establishment of the MIF, stating that it would expand the government’s fiscal space for priority projects. The Department of Budget and Management (DBM) will provide support and technical assistance in formulating the implementing rules and regulations for the MIF.

The MIF will invest in diverse assets, including foreign currencies, fixed-income instruments, corporate bonds, joint ventures, mergers and acquisitions, real estate, and high-impact infrastructure projects. This long-term source of income will alleviate the burden on the national budget and provide additional funding for other priority projects.

Speaker Martin Romualdez, who witnessed the signing, highlighted the MIF as an additional financing vehicle for infrastructure projects. It will reduce reliance on local funds and development assistance, allowing the government to execute sustainable economic development programs without imposing new taxes. Romualdez emphasized that the MIF would contribute to job creation, improved livelihoods, and a better future for Filipinos.

Unlike other government-owned or -controlled corporations, the MIF will maximize government assets through investments in projects with higher returns. The law establishes the Maharlika Investment Corp. (MIC) as the exclusive vehicle for mobilizing and utilizing the MIF for optimal investment returns. The MIC expects PHP75 billion in paid-up capital sourced from the Land Bank of the Philippines and the Development Bank of the Philippines.

The law prohibits certain government agencies and GOCCs, such as those providing social security and public health insurance, from contributing to or investing in the MIF. The Commission on Audit will conduct special audits of the MIC’s books and accounts every five years. Furthermore, all MIF and MIC documents will be made available to the public in both English and Filipino in compliance with applicable laws.

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