The Governance Commission for Government Owned or Controlled Corporations (GCG) has collaborated with the Asian Development Bank (ADB) to strengthen its supervision of sovereign wealth funds (SWF).

In a statement, Marius P. Corpus, GCG chairperson, said the capacity-building activity offered them an opportunity to develop expertise in supervising public corporations responsible for managing a nation's SWF.

In addition to SWFs, the ADB also discussed Indonesia's best practices in State-Owned Enterprise (SOE) Policy Reforms.

“A seminar on Sovereign Wealth Fund and State-Owned Enterprise Policy Reforms is not only relevant but most importantly, timely to be discussed in the Philippines with the country’s recent efforts towards the creation of its own sovereign wealth fund,” Corpus said.

The Philippines has created this year its first sovereign wealth fund, the Maharlika Investments Corp. (MIC), with plans for it to become fully operational by year-end.

The purpose of establishing the MIC is to serve as the sole entity for managing and utilizing the country's Maharlika Invest Fund (MIF). 

But as a GOCC, the MIC is governed by the provisions of Republic Act No. 10149, also referred to as the “GOCC Governance Act of 2011.”

Corpus said the GCG plays a key role in overseeing state-owned firms to ensure that the SWF and the GOCCs effectively contribute to the country's development on a global scale.

He said the GCG is working to improve its linkages with local and international partners in order to elevate corporate governance standards, in line with ADB’s vision for a prosperous, inclusive, resilient, and sustainable Asia and Pacific.

“These engagements highlight GCG’s unwavering pursuit of the best practices to introduce reforms in the GOCC sector for the benefit of the Filipino people,” Corpuz said.