Albay 2nd District Rep. Joey Salceda | PHOTO: Official website of Joey Salceda / salcedaserves.org
MANILA, Philippines — Possible co-investors and foreign partners for the proposed Maharlika Investment Fund (MIF) already being engaged in preparation for the sovereign wealth fund’s launch, Albay 2nd District Rep. Joey Salceda said on Wednesday.
Salceda said this even as President Ferdinand Marcos Jr. has yet to sign the bill, which was only enrolled by the Senate earlier.
However, the lawmaker said that he had discussions with the Board of Treasury, and it was revealed that “co-investors and strategic foreign partners” are being engaged in talks about the MIF.
“I had discussions today with the Bureau of Treasury during our meeting with the World Bank and IMF (International Monetary Fund) Joint Mission. Co-investors and strategic foreign partners are being engaged right now, so that we can hit the ground running once MIF is launched,” he said.
According to Salceda, these steps — seeking technical assistance from the IMF, the World Bank, and other global observers and experts — are important in setting up the MIF.
“The expertise of the multilaterals will ensure that we start on strong footing. There are three ways they can help us. First, their credibility will help attract foreign investors,” Salceda, who heads the House Committee on ways and means, said.
“Second, their presence will encourage good corporate governance and accountability in the MIF. Third, their financial resources are staggering. World Bank alone has been able to support around 115 billion USD in commitments every year,” he added.
The controversial MIF bill, which was scrutinized by opposition lawmakers for supposedly being rushed by the administration, was approved by both houses of Congress last May 31, before the session went into a sine die adjournment.
READ: Proposed Maharlika fund just needs the President’s signature to become a law
The bill however has not yet reached the President’s desk, as it was only enrolled earlier by the Senate, after it was signed by Senate President Juan Miguel Zubiri. It is unclear if House Speaker Ferdinand Martin Romualdez has signed the final copy of the bill, as enrollment would require the two Congressional leaders’ signatures.
READ: Zubiri signs enrolled bill on Maharlika Investment Fund
Nevertheless, Salceda expects Marcos to announce the enactment of the proposed MIF on the Chief Executive’s second State of the Nation Address (Sona) on July 24.
Salceda, a proponent of the bill, maintained that the MIF would be a big help to the government’s recovery efforts,
“It’s a good investment option for the capital markets because it would expose them to a diverse and potentially high-yielding portfolio. It’s like investing in Philippine growth, which has plenty of runway. Plus, it has environmental and social governance structures embedded in its charter. So, on ESG ratings, it should do well,” Salceda said.
“Being listed in the stock exchange is also good for MIF, because it will subject the fund to greater public scrutiny, which encourages accountability. I discussed listing with the Bureau of Treasury, and it’s a goalpost, down the line,” he added.
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