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Maharlika fund to sustain eco growth, reduce poverty

By Komfie Manalo




Maharlika Investment Corporation (MIC) president and chief executive officer Rafael Consing said the country's sovereign wealth fund could promote sustainable development by sustaining high economic growth and reducing poverty.


In addition, Consing said the Maharlika Investment Fund (MIF) will create jobs.


"The Maharlika Investment Fund is a sovereign wealth fund formed by the government for investments," he said during the Pre-SONA (State of the Nation Address) Special aired over People's Television Network.


He said the MIF's twin objectives are the return of capital and implementing socio-economic development goals.


Consing, citing a study conducted by Maybank, said that Maharlika's multiplier impact is 2.1 times.


"Maybank's study said that the impact... for every one peso that we put in, is roughly about 2.10 to 2.5. We believe that is true and that's the impact we want," he said.


Consing said the MIC is prioritizing investments to improve electricity services in rural areas, where roughly 52% of the country's population lives.


"The primary driver of progress is power," he said, adding that it will help attract more investments and increase income in rural areas, allowing people to spend more, eventually boosting consumption.


Under Republic Act (RA) 11954, inked by President Ferdinand R. Marcos Jr. on July 18, 2023, the MIF will be used to invest 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 that contribute to sustainable development.


Consing said the MIC "should be up and running" when it makes its first investment before the end of the year.


"We have an investment and management framework. Hopefully, the Board will approve it this coming Thursday. This is what we call the condition so we can make our first investment," said Consing.


In a separate Viber message to the Philippine News Agency, Consing said the investment and risk management (I&RM) framework outlines the detailed policies, strategies, and risk management practices that will guide MIC's investment making and portfolio management.


"According to Article 4, Section 14 of RA 11954, MIC must strictly comply with the Investment and Risk Management Guidelines before engaging in any investment. This implies that the I&RM Framework, which outlines these guidelines, is a precondition for making investments," Consing said. 


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