PSE to play bigger role in PH dev't with MIF--Speaker

House Speaker Martin Romualdez (MANILA BULLETIN)


House Speaker Martin Romualdez is predicting that the Philippine Stock Exchange (PSE) would play a bigger role in the country’s development with the potential enactment of the Maharlika Investment Fund (MIF). Romualdez, the prime mover of the MIF Bill in the House of Representatives, had this to say during the inauguration of the PSE Event Hall on Monday, May 29. In his keynote speech, Romualdez stressed the House members' belief in the capital market and its importance in the country’s economic recovery and development. “Our strong belief in the important role of capital markets in supporting the national development agenda is also the driving force behind our proposed establishment of the Maharlika Investment Fund,” the House leader said, referring to the proposed Philippine sovereign wealth fund. Romualdez reckoned that the Maharlika Investment Corporation (MIC) that will be created to manage the MIF "will invariably look to the PSE in its search for blue chip investment opportunities, from which handsome dividends may be generated – dividends which shall be channeled to fund the government’s strategic social programs towards the achievement of the nation’s larger development goals". Described by proponents as a "vehicle for investments", the MIF seeks to create a new revenue stream for the country by tapping investible funds for investments either here and abroad. The profits from these investments will be used to bankroll big ticket projects. The House's proposed version of MIF lists the Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), Philippine Gaming and Amusement Corp. (Pagcor), and Bangko Sentral ng Pilipinas (BSP) as contributors to the MIF seed money. The lower chamber overwhelmingly approved the MIF Bill last Dec.15. The nominal vote result was 279-6-0 (yes-no-abstain). Meanwhile, the Senate is expected to pass its own version of the measure before the sine die adjournment of Congress this week, after President Ferdinand "Bongbong" Marcos Jr. certified the measure as urgent.