Maharlika Investments Fund Act

2 minutes • 371 words

Introduced by:

Ferdinand Martin G. Romualdez
Manuel Jose ‘Mannix’ M. Dalipe
Ferdinand Alexander A. Marcos
Stella Luz A. Quimbo
Yedda Marie K. Romualdez
Jude A. Acidre

The MIF would give Government Financial Institutions (GFIs), including the GSIS, SSS, LBP, DBP, the opportunity to:

ensure their respective funds’ optimal asset allocation
ensure that resources are efficiently channeled to investments that will provide the most value to the country.

SWFs can also successfully be used as a tool of national strategy.

This is evidenced by the successful performance of Singapore’s SWFs, such as the GIC private Limited which provide the financial means for Singapore to:

manage its foreign reserves
defend itself and protect its sovereigrty without compromising its domestic program
augment its land-limited economic space with global investments.

SWFs can also be used to attract direct investments, as what the Indonesia Investment Authority (INA) did.

By attracting foreign co-investors to capitalize the fund rather than rely on commodity revenues, the INA has been very successful in bringing in much-needed investments in infrastructure and emerging industries, ultimately spurring growth in Indonesia

To ensure transparency and accountability, the MIF will adhere to the Santiago Principles, i .e., the Generally Accepted Principles and Practices (GAPP) agreed to in October 2008 in Santiago, Chile.

This is in a collaborative global effort among countries with SWFs, investment recipient countries and international organizations, to observe:

the compliance of the SWF with all regulatory and disclosure requirements in the countries in which SWFs invest
that the SWF will have in place a transparent and sound governance structure that provides adequate operational controls, risk management, and accountability , among other commitments.

There are now almost 50 countries with a sovereign wealth Fund.

In Asia alone, the nations that currently have SWFs are:

Singapore
China
Hong Kong
South Korea
Malaysia
Indonesia
Taiwan
Vietnam
East Timor

As the Philippines secures its place not only as the RIsing Star of Asia but as a real economic leader in the Asia Pacific, the creation of the MIF becomes imperative.

In view of the foregoing, the immediate approval of this bill to create the Maharlika Wealth Fund is urgently sought.

FERDINAND ALEXANDER A. MARCOS First District, Ilocos Norte

STELLA LUZ A. QUIMB0 Second District, Marikina City