MAHARLIKA Investment Corporation (MIC), the state-owned company that will manage the country’s first sovereign wealth fund, is expected to begin its investment activities in the first quarter of 2024.
Finance secretary Benjamin Diokno expressed optimism that the Maharlika Investment Fund (MIF) will be fully operational by the end of 2023.
The initial capitalization of the MIC has already been secured: the Land Bank of the Philippines and Development Bank of the Philippines have already transferred their mandatory contributions to the MIC’s initial capital of P50 billion and P25 billion, respectively, to the Bureau of Treasury’s (BTr) account.
The Bangko Sentral ng Pilipinas, which is one of the national government’s sources of contribution to the MIC’s initial capital, has remitted P31.859 billion as well.
Diokno said the MIF’s Advisory Body — composed of the Secretary of the Department of Budget and Management (DBM), the Secretary of the National Economic and Development Authority (NEDA), and the BTr — is expected to transmit to President Ferdinand “Bongbong” Marcos Jr. the final list of nominees for the MIC Board of Directors on or before Oct. 12, 2023.
“After which the President of the Philippines shall appoint the best candidates for the respective positions,” the Finance chief said.
The MIC’s Board of Directors will be composed of a president and CEO; the Finance secretary, who will serve as the ex-officio chairperson; the presidents of Land Bank of the Philippines and Development Bank of the Philippines; two regular directors; and three independent directors from the private sector.
Diokno said once the MIC Board is complete, it will conduct its first meeting, marking the operationalization of the sovereign wealth fund.
Asked when the MIC will start its investment activities, the Finance chief said, “Around first quarter of next year.”
He added that investors are waiting for the “faces of the MIC,” their respective strategies, and where they will invest the MIF.
The Department of Finance earlier said that the initial capital of the MIC is expected to yield earnings at 6 percent interest rate annually.
“The impact of the MIF is positive on the fiscal side, because many of the projects, that otherwise will be funded in the [national] budget, can be funded through it,” Diokno said.
“So it can relieve the spending side as we have another source of funding for our top priority projects, that otherwise would have to be funded through the budget,” he said.
MIC is the government-owned company that will manage the MIF — a pool of funds sourced from state-run financial institutions that will be invested in high-impact projects, real estate, as well as in financial instruments.
The law creating the MIF was signed into law in July this year, while its implementing rules was released late August. (GMA Integrated News)
