DAVOS, Switzerland — The proposed Maharlika Wealth Fund (MWF) has officially made its global debut after President Ferdinand "Bongbong" Marcos Jr. said that it would not just diversify the country's financial portfolio but also enable it to withstand adverse shocks.
Marcos said this during Tuesday's 2023 World Economic Forum (WEF) Country Strategy Dialogue here.
In his speech, the President highlighted the benefits of the controversial proposed sovereign wealth fund, one of which is diversifying the country's portfolio.
"Such a fund is one tool among many in our efforts to diversify our financial portfolio, which includes our existing institutions pursuing investment that will generate stable returns but also welfare effects spanning employment creation, improvement of public service, and a decrease in costs of economic activities," he said.
The MWF is a sovereign wealth fund that the government will use to invest in various outlets, such as foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure projects.
The President earlier said that the MWF is aimed at significant investments in essential areas such as agriculture, energy, digitalization, and climate change.
Meanwhile, Marcos said the Philippines' strong macroeconomic fundamentals and structural reforms had helped it amid negative shocks caused by different challenges and given it a good start at recovery.
The President noted that there are now many opportunities waiting for investors.
"Our strong macroeconomic fundamentals, fiscal discipline, structural reforms, and liberalization of key sectors instituted over the years have enabled us to withstand the negative shocks caused by the pandemic and succeeding economic downturns and map a route towards a strong recovery," he said.
"There's a vast range of investment opportunities available such as in renewable energy, agro-processing, transportation, and infrastructure development, amongst others, and several public-private partnerships in the pipeline," he added.
According to Senator Mark Villar, who is part of the President's official delegation, many parties expressed interest in the Philippines and the Maharlika Wealth Fund.
"Ito ay isang pondo na nakikita nila na magagamit natin para lalong bumilis ang development ng ating bansa and, of course, as investors gusto rin nilang makita na active tayo sa infrastructure at sa mga (This is fund that they think we can use to hasten development and, of course, as investors, they want to see that we're active when it comes to infrastructure and) products or funds that can help the government," he said.
Villar said that the MWF is not a cost but a source of income that could improve the country's fiscal situation.
"Kagandahan po ng wealth fund, naka-allocate po ‘yung income ng wealth fund para sa benefit ng ating mga kababayan. So for social projects na makakatulong sa mga mahihirap (What's good about the wealth fund is it is allocated to benefit the people. So it's for social projects that would benefit the poor)," he said.
Meanwhile, Finance Secretary Benjamin Diokno explained that a sovereign wealth fund is "ordinary" for other countries as this is where they get their long-term investment.
"Pinaplano namin na mag-umpisa tayo magkaroon ng sovereign fund katulad ng ibang bansa. Ang panggagalingan niyan for example ‘yung mga --- may mga korporasyon tayo na nagde-declare ng dividend every year (We're planning to have a sovereign fund like other countries. We'll get it, for example, from corporations that declare yaerly dividends)," he said.
Diokno said he was happy President Marcos had been enthusiastically promoting the Philippines since he assumed office in June 2022.
"Lagi ko sinasabi na (I always say that) this is our moment. We have a nice story to tell, and it's just a matter of implementation para gumanda talaga ang buhay ng Pilipinas at ng mga Pilipino (to improve the lives of our people and the Philippines)," he said.