President Ferdinand Marcos Jr. signed the Maharlika Investment Fund bill into law earlier today amidst warnings that it may put the economy at risk.
Maharlika Investment Fund Law
The Maharlika Investment Fund itself is a sovereign wealth fund that the government will use to invest in foreign currencies, commercial real estate, infrastructure projects, and domestic and foreign corporate bonds.
Under the law, the initial capital will come from the investible funds of the Land Bank of the Philippines, the Development Bank of the Philippines, and declared dividends of the Bangko Sentral ng Pilipinas (BSP), among other sources.
“Through the fund, we will leverage on a small fraction of the considerable but underutilized investable funds of government and stimulate the economy without the disadvantage of adding additional fiscal and debt burden,” Marcos said in a statement.
The president reiterated that the fund will be managed by “the best economic managers both in government and in the private sector”.
The bill was first filed by House Speaker Martin Romualdez, Senior Deputy Majority Ilocos Norte Representative Sandro Marcos, and four other lawmakers.
Source: Gadget Pilipinas
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