Bongbong Marcos: State pension fund won’t be used for Maharlika fund but…

President Ferdinand Marcos Jr. speaks to Reuters during an exclusive interview at his hotel in Washington, U.S., May 4, 2023. (File photo from REUTERS/Evelyn Hockstein)

MANILA, Philippines — President Ferdinand “Bongbong” Marcos Jr. on Wednesday expressed his commitment that government will not use the state pension fund for the proposed Maharlika Investment Fund (MIF).

“I perfectly agree. We have no intention of using ang pera – kukuha tayo ng pera ng pension fund. That’s not the (intention). We will not use it as a seed fund,” Marcos said in an interview on the sidelines of the 87th anniversary of the Government Service Insurance System (GSIS).

Marcos was asked about his views on the possibility of using the state pension funds as a funding source for the MIF.

“However, a pension fund, which is what pension funds do, is they invest. If the pension fund decides the Maharlika Investment Fund is a good investment, it’s up to them if they want to invest in it,” he added.

The proposed measure creating MIF, certified as urgent by the President, was approved by Senate in the early hours of Wednesday, following over 12 hours of deliberations.

Under the Senate-approved bill, investments from the Social Security System, GSIS, Philippine Health Insurance Corporation, Home Development Mutual Fund, Overseas Workers Welfare Administration, and Philippine Veterans Affairs Office are banned.

The House of Representatives approved its version in December last year.

It is now under consideration by the bicameral conference committee.

Department of Budget and Management (DBM) earlier said the fund’s funding sources include the Landbank of the Philippines, Development Bank of the Philippines, privatization proceeds, Philippine Amusement and Gaming Corp., and Bangko Sentral ng Pilipinas dividends.

The proposed MIF is defined as an independent fund that will be sourced from the investible funds of select government financial institutions (GFIs), from national government contributions, declared dividends of the BSP and other fund sources.

Under the scheme, MIF will supposedly be used to invest in strategic and commercial activities designed to promote fiscal stability for economic development.

APL/abc