MANILA: The Maharlika Investment Fund (MIF) will help boost the country’s economic growth by reducing poverty and creating more jobs.
Maharlika Investment Corporation (MIC) president and chief executive officer Rafael Consing said the MIF aims to help support and sustain the country’s high economic growth, reduce poverty by creating jobs, and promote sustainable development.
“‘Yung Maharlika Investment Fund, isa siyang sovereign wealth fund na kung saan binuo po siya ng gobyerno para makapag-invest siya (The Maharlika Investment Fund is a sovereign wealth fund formed by the government for investments),’ he said during the Pre-SONA (State of the Nation Address) Special aired over People’s Television Network on Tuesday.
He said the MIF’s twin objectives are the return of capital and implementing socio-economic development goals.
Consing, citing a study conducted by Maybank, said that Maharlika’s multiplier impact is 2.1 times.
“Maybank’s study said that the impact… for every one peso that we put in, is r
oughly about 2.10 to 2.5. Naniniwala kami na tama po ‘yung impact na ‘yun at ‘yun talaga ang gusto naming impact (We believe that is true and that’s the impact that we want),” he said.
Consing said the MIC is prioritizing investments to improve electricity services in rural areas, where roughly 52 percent of the country’s population lives.
“The primary driver of progress is power,” he said, adding that it will help attract more investments and increase income in rural areas that will allow people to spend more which will eventually boost consumption.
Under Republic Act (RA) 11954 inked by President Ferdinand R. Marcos Jr. on July 18, 2023, the MIF will be used to invest 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 that contribute to the attainment of sustainable development.
Consing said the MIC ‘should be up and running’ when it makes i
ts first investment before the end of the year.
“Meron tayong investment and risk management framework. Sana po ito po ay ma-approve na ng Board this coming Thursday. Siya po ang tinatawag nating condition para magawa na natin iyong una nating investment. (We have an investment and management framework. Hopefully the Board approves it this coming Thursday. This is what we call the condition so we can make our first investment),” said Consing.
In a separate Viber message to the Philippine News Agency, Consing said the investment and risk management (IandRM) framework outlines the detailed policies, strategies, and risk management practices that will guide MIC’s investment-decision making and portfolio management.
“According to Article 4, Section 14 of RA 11954, MIC must strictly comply with the Investment and Risk Management Guidelines before engaging in any investment. This implies that the IandRM Framework, which outlines these guidelines, is a precondition for making investments,” Consing said.
Source:
Philippines News Agency