Finance Secretary Frederick D. Go said the Maharlika Investment Corp. (MIC) should prioritize the energy sector to lower electricity costs and stimulate industrial growth even if power projects offer limited direct hiring.

Go told reporters last week that the energy sector, while it does not provide direct jobs, is “a critical component to industries that provide jobs.”

As such, Go urged injecting funds into the energy sector, arguing that it “could be developed further with the main objective of reducing power costs,” which would require increasing energy supply or making it more predictable, consistent, and stable.

“By bringing down power costs, you attract more investments in manufacturing, logistics, and agricultural processing, among others,” President Marcos’ chief economic manager told reporters.

Overall, Go believes Maharlika investments should consider their impact on local employment and on gross domestic product (GDP) expansion.

“[Maharlika] should invest in companies or projects that have a direct relationship to economic growth or providing jobs here in the Philippines,” Go said, adding that firms that do not offer these opportunities should not take the attention of the fund.

Maharlika is targeting ₱1.8 billion in gross income from the ₱34.9 billion in capital it deployed this year. Of this, ₱1 billion is the target net income, while net returns from the fund’s capital base are expected to reach ₱4.1 billion.

Go said an SWF should not be set up primarily to invest in A-rated bonds, as the fund's main purpose is to spur economic growth.

He said investing in bonds that are convertible to equity would be more meaningful than simply buying bonds, noting that if the goal is only to purchase bonds, there is no need for an SWF.

All of the government’s excess funds, he said, are already held in bonds and government securities.

Go, who served as Special Assistant to the President for Investment and Economic Affairs (SAPIEA), also addressed concerns about the planned dissolution of the office.

He said about half of the 20 members will continue working in the Office of the President (OP) to help with investments.

According to Go, Erwin Sta. Ana, a former World Bank representative for the Philippines, joined the Office of the Executive Secretary (OES) to head the group focused on economic affairs. Its creation was announced earlier by the OES.

Meanwhile, the remaining half will join him at the Department of Finance (DOF). “In my capacity as DOF Secretary, I will continue to coordinate and support the government’s investment promotion activities.”

He shared that President Marcos plans to engage with domestic and foreign investors overseas next year.

“Our public stakeholders and businesses are concerned that the focus on investments might wane, so it’s important to communicate that investments remain a top priority of the Marcos administration,” said Go.