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Committee on Ways and Means Chairman Albay 2nd district Rep. Joey Salceda has answered a fundamental question about the proposed Maharlika Investment Fund (MIF).

The question: Is it a developmental fund, or a financial investments fund?

"Now, clearly stating whether the MIF is a developmental fund or a financial investments fund is a false dichotomy," Salceda said in a statement Wednesday, June 7.

"Of course, at the core, the MIF is developmental. The President has repeated this, and this is the main direction of the fund. But it has to make money to be sustainable," the economist-solon said.

"Section 13 also makes it clear that it is a development fund above all else. In unequivocal terms, it states that 'The objective of MIF is to promote socio-economic development.' End of story there," Salceda underscored.

"What follows that provision are ways to do it, not objectives. So, it’s mainly a development fund, and if it takes on the characteristics of an investment fund in some respects, it does so only because it necessarily has to be involved in the financial markets," he further explained.

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 or abroad. The profits from these investments will be used to bankroll big-ticket projects.

The contentious measure now only needs President Ferdinand "Bongbong" Marcos Jr.'s signature for it to become a law. The belief among legislators is that Marcos will announce or at least highlight the MIF's enactment during his second State of the Nation Address (SONA) on July 24, 2023.

Salceda gave these remarks about the MIF in response to some issues raised by members of the University of the Philippines School of Economics (UPSE) faculty in their discussion paper on the MIF.

The Bicolano took part in a "pre-bicam" meeting between House members and senators on the MIF last week wherein the House contingent agreed to adopt the version of the Senate.

The initial capital fund of the MIF in the agreed upon version is P500 billion.