The Philippines' first sovereign wealth fund, Maharlika Investment Fund (MIF), is projected to be operating by the end of the year, according to Finance Secretary Benjamin Diokno, the chief economic manager of President Ferdinand Marcos Jr.’s administration.

Diokno expressed optimism in his weekly briefing that the Maharlika Fund bill, which was approved by Congress early last week, with the House of Representatives adopting the Senate version during the bicameral conference committee meeting, will be signed into law by Marcos before his second State of the Nation Address on July 24.

This is because the measure is about to be enrolled and forwarded to the President for his approval and signing.

Diokno said that they are expected to prepare the implementing rules and regulations once the bill is passed, stating that they will be looking forward to working at the Maharlika Investment Corporation (MIC).

The MIC, a government-owned firm, will manage the MIF, a sovereign wealth fund composed of cash collected from state-run financial institutions and invested in high-impact projects, real estate, and financial instruments.

The MIF bill states that the Maharlika Fund would be created using:

• P50 billion from the Land Bank of the Philippines (LBP)

• P25 billion from the Development Bank of the Philippines (DBP)

• P50 billion from the National Government

The contribution from the national government would come from the following sources:

• Bangko Sentral ng Pilipinas' total declared dividends

• The national government's share of the income of PAGCOR

• Properties, real and personal, identified by the DOF Privatization and Management Office

• Other sources, such as royalties and/or special assessments

Meanwhile, Diokno stated that the MIF would have an initial capitalization of P75 billion by the end of the year, with Landbank and DBP contributing.