The Philippine Maharlika Investment Fund: More delays?

PHILIPPINES - Report 05 Aug 2024 by Diwa Guinigundo and Wilhelmina Manalac

A little over a year after Republic Act (RA) No. 11954 or the Maharlika Investment Fund (MIF) Act was signed into law on July 18, 2023, the Philippines has yet to witness the MIF engaged in its first investment activity. The MIF, the country’s first version of a sovereign wealth fund, was contemplated to catalyze economic development by mobilizing government financial assets. It was considered as an investment diversification opportunity and a means to maximize returns for the two founding government financial institutions namely, the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP). The Fund is intended to provide an alternative source of funding for the country’s massive infrastructure needs, which are currently being financed primarily through Official Development Assistance Loans from various multilateral and bilateral sources, as well as from the Philippines’ own budget. An issue that appears to be unresolved concerns staff compensation, particularly of the CEO. Mr. Rafael Consing Jr., President and CEO of the Maharlika Investment Corporation, which manages the MIF, has been vocal about providing salaries comparable to the private sector with regards to highly technical staff.

Given the time value of money, the Philippine government clearly cannot afford further delays due to technical issues on management compensation and benefits.

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