The Department of Finance (DOF) has thrown its support behind the proposed measure seeking the creation of a sovereign wealth fund with safeguards against political interference.
During a Kapihan sa Manila Bay Forum on Wednesday, Nov. 30, DOF Secretary Benjamin E. Diokno said he expects President Ferdinand Marcos Jr. would certify as urgent the bill that aims to establish the so-called Maharlika Wealth Fund.
Diokno said the Marcos administration expects the fund will begin operational next year with an initial capital of P250 billion.
Resources would primarily come from contributions from the Government Service Insurance System, Social Security System, Land Bank of the Philippines, Development Bank of the Philippines, and national government, he said.
Diokno also assured that the country’s sovereign wealth fund will be transparent with safeguards against political interests, and that it will be well-managed unlike Malaysia’s infamous state-owned investment fund, 1Malaysia Development Berhad (1MDB).
“We are more transparent, and there will be a governing body that is entirely separate from the government. While some cabinet members will be part of the advisory council, they will be independent,” Diokno said.
The DOF chief, however, said the President will be the one appointing people who will manage the fund.
Earlier, House Speaker Martin G. Romualdez filed House Bill 6398 that called for the establishment of the Maharlika Wealth Fund, patterned after the sovereign wealth fund of other countries.
Romualdez explained the fund aims to maximize the profitability of investible government assets for the benefit of all Filipinos.
The proposed fund is patterned after the sovereign wealth funds of 49 countries, including Singapore, China, Hong Kong, South Korea, Malaysia, Indonesia, Taiwan, Vietnam, and East Timor.
Under the bill, the envisioned Maharlika Wealth Fund would have a governing board, composed of nominees of the contributing state-owned firms, which would be in charge of managing the fund.
The board would include two independent directors from the national government.