President Marcos’ chief economic manager is confident that the Maharlika Investment Fund (MIF) will help usher in economic growth that is both inclusive and sustainable.

Finance Secretary Benjamin E. Diokno issued the statement as he lauded Congress for the swift approval of the MIF Act of 2023 after the House of Representatives adopted the Senate version of the bill.

“I thank our legislators for their thoughtful deliberation and timely approval of the Maharlika Investment Fund bill,” Diokno said.

“The economic team is resolute in its commitment to ensure that the entity created will be able to generate returns that will redound to inclusive and sustainable economic growth,” he added.

Diokno said the MIF, the country’s first-ever sovereign wealth fund, will optimize national funds by generating returns to support the Marcos administration’s economic goals.

He said the fund will be invested in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate, and high-impact infrastructure projects.

“The establishment of the MIF will provide the government with a long-term source of income that will support generations to come. It will also ease the burden on the national budget by providing additional funding for other priority projects of the government,” Diokno said.

Unlike other Government-Owned or -Controlled Corporations (GOCCs), the MIF will be able to maximize government assets through its investments in projects that generate bigger returns.

The Senate’s version of the bill addresses the issues concerning the MIF’s capitalization and management.

The final version of the bill explicitly prohibits government agencies and GOCCs that provide for social security and public health insurance (of government employees, private sector workers and employees, and other sectors and subsectors) to contribute to and invest in the Fund.

These include, but are not limited to, the Social Security System, Government Service Insurance System Philippine Health Insurance Corp., Home Development Mutual Fund, Overseas Workers Welfare Administration, and Philippine Veterans Affairs Office pension fund.

An Audit Committee will be constituted by the Board of Directors to provide recommendations on the engagement of an external auditor. It will also oversee the internal and external audits mandated under the Act.

A Risk Management Committee composed of five members will also be organized by the Board to ensure the Maharlika Investment Corp.’s s prudence in balancing risk and reward in both ongoing and new business activities.

“Congress’ timely passage of the Maharlika Investment Fund Act before the President’s second State of the Nation address speaks volumes of its commitment to see through the implementation of the administration’s goals,” Diokno said.