By Chino S. Leyco Local insurer Malayan Insurance announced yesterday that the company is considering to invest in the government’s infrastructure projects. In a statement, Joji Basa, Malayan Insurance Investment Management head said that infrastructure projects are becoming a “more viable” investment for their industry as they would improve business performance in terms of returns. Basa also noted that infrastructure investments would enable insurance companies to diversify their investment portfolio while consolidating efforts to strengthen the country's position as an emerging economy. While infrastructure projects have very low probability of default, the Malayan official, however, said insurance firms’ investment in infrastructure should come “with some sort of government guarantee.” “This type of investment also is typically less volatile compared to conventional financial market assets which makes it ideal for long-term investing,” Basa said. Earlier, the Insurance Commission has issued a circular allowing insurance firms to invest in government infrastructure projects. “Encouraging this activity provides a new investment channel for insurers, giving them improved performance in terms of returns, all while positively contributing to the country's economic growth. This kind of stimulation provides insurers with objective reasons to pursue investments with public infrastructure projects,” the insurer said. While insurance firms have traditionally helped with infrastructure projects through joint private-public partnerships, the new circular now encourages independent and straightforward investment with public project, Malayan said. The Duterte administration's "Build, Build, Build" infrastructure project is a massive campaign that will require up to P9 trillion in investment capital over the medium term, with over 28 projects slated for completion by 2022. Malayan Insurance is a member of the Yuchengco Group of Companies.