Marcos pitches for Maharlika on APEC sidelines
Credit to Author: Alexis Romero| Date: Fri, 17 Nov 2023 00:00:00 +0800
SAN FRANCISCO – Some 80 state infrastructure projects may be bankrolled through the Maharlika Investment Fund (MIF), President Marcos said yesterday as he made yet another pitch for the Philippines’ first ever sovereign wealth fund before global investors.
In a speech during the Philippine Economic Briefing here, Marcos noted that the MIF – a pet policy of his administration – would serve as an additional source and mode of financing for priority projects of the government, including flagship infrastructure.
He said the projects to be funded by Maharlika offer “high rates of return” and “significant socioeconomic impact.”
“Currently, we have identified about 80 potential infrastructure projects that are financeable through the fund, the Maharlika Investment Fund,” the President said at the forum, which was attended by investors from the Asia-Pacific Economic Cooperation (APEC) member economies.
“We look forward to the operationalization of the Maharlika Investment Fund,” he added.
Asked to elaborate on Marcos’ remarks, National Economic and Development Authority Secretary Arsenio Balisacan said the MIF could support urban-based and profitable projects like airways, toll ways and airports. He said the wealth fund may also fund the rehabilitation of the Ninoy Aquino International Airport, the Philippines’ premier gateway listed a number of times as among the worst airports in the world.
“The objective is to grow the fund so that we can have more resources for investing in strategic industries,” Balisacan said.
The MIF aims to encourage and sustain high-impact infrastructure and development projects, ease fiscal constraints and maximize expected returns for the Philippines’ investments.
Republic Act 11954, the law creating the wealth fund, was enacted last July 18. Economic managers claim the MIF would help the government promote socio-economic development through strategic investments in vital sectors. However, critics of the law argue that the wealth fund is unnecessary and poses risks to the Philippine economy. A petition seeking to declare the MIF law as illegal is pending with the Supreme Court.
The initial implementing rules and regulations for the MIF law were released last Aug. 28. However, Malacañang ordered the suspension of the IRR in October, saying Marcos wanted to study the document to ensure that safeguards are in place.
The document containing the revised IRR was issued last week.
Among the changes adopted by the government is allowing Marcos to reject the recommendation of the Maharlika Investment Corp. (MIC) advisory board on vacant posts and require the body to submit additional nominees. The revised IRR also removes some qualifications for regular and independent directors of the MIC.
Earlier this week, Marcos appointed former corporate executive Rafael Consing Jr. as president and CEO of the MIC.
At the same briefing, Marcos highlighted the economic gains of the Philippines, saying his administration has “embarked on a journey towards economic transformation grounded on sound macroeconomic fundamentals, a favorable business climate, and agile risk management.”
“With a solid reform agenda and unabating growth amid headwinds, the Philippines is ready to take off as a leading investment hub in Asia. A wealth of opportunity awaits you in the Philippines, and we are ready to explore new horizons with your investments in the coming years,” the President said.
“More than one year on, in an uncertain global environment beset by slower growth, supply chain disruptions, and geopolitical tensions, the Philippines has continued to rise above the tide.”
Marcos reported that the Philippines posted its highest full-year gross domestic product growth in nearly five decades in 2022. He added that the country’s economy expanded by 5.9 percent in the third quarter of 2023, bringing its growth for the first three quarters of the year to 5.5 percent.