President Ferdinand 'Bongbong' Marcos Jr. on Wednesday said the proposed Philippine sovereign wealth fund, which he showcased to fellow leaders at the World Economic Forum (WEF) in Davos, Switzerland, will be used to leverage government assets and pursue big-ticket infrastructure projects, particularly in energy and agriculture.
Marcos made the remarks during his opening speech at the WEF Country Strategy Dialogue.&nbsp;
On December 15, the House of Representatives approved the measure on the proposed Maharlika Investment Fund on the third and final reading. It was later transmitted to the Senate for its consideration.&nbsp;
"Such a fund is one tool among many in our efforts to diversify our financial portfolio, which includes our existing institutions pursuing investment that will generate stable returns, but also welfare effects spanning employment creation, improvement of public service, and a decrease in costs of economic activities," Marcos said, as quoted by the Palace.&nbsp;
According to the President, the proposed sovereign wealth fund is a "good idea" to support the government.&nbsp;
"When we first discussed the sovereign wealth fund, the real purpose is that there is not enough money in government to do all the things that we need to do," Marcos said. "We have reserves. And we must make [sure] that money sitting in banks, commercial and government&hellip; We need to find a way to make that money work for us, and that's why we thought the sovereign wealth fund would be a good idea to leverage what assets the government has, what monies the government has."&nbsp;
Marcos further that the proposed sovereign wealth measure will fund critical infrastructure projects "especially since the development that we are anticipating to initiate are really big-ticket items."
"We're talking about energy, we're talking about infrastructure, we're talking about agricultural development, we're talking about digitalization. So all of these will need a great deal of support," he said.&nbsp;
Senator Mark Villar earlier said business investors&nbsp;<a href="https://dzrh.com.ph/post/maharlika-gets-backing-from-wef-attendees-villar-says" target="_blank" rel="noopener">backed</a> the controversial Maharlika Investment Fund bill.
In a video statement on Wednesday, Villar said investors showed their support after Marcos presented the proposed bill to them in his opening remarks during the Philippines Country Strategy Dialogue.
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"Galing po ako sa dialogue kahapon at masasabi ko na marami po ang nagiging interested. Maraming interesado sa Pilipinas at syempre po sa wealth fund dahil ito ay isang pondo na nakikita nila na magagamit natin para lalong bumilis ang development ng ating bansa," he said.
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"Of course, as investors gusto rin nilang makita na active tayo sa infrastructure at sa mga products or funds that can help the government,&rdquo; Villar added.
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"Such a fund is one tool among many in our efforts to diversify our financial portfolio, which includes our existing institutions pursuing investment that will generate stable returns, but also welfare effects spanning employment creation, improvement of public service, and a decrease in costs of economic activities," Marcos said, as quoted by Malaca&ntilde;ang.
The chief executive also noted that the creation of the wealth fund &mdash;&nbsp;which hurdled the House of Representatives in December &mdash;&nbsp;is "underway."
A sovereign wealth fund is a state-owned investment fund commonly financed by a country's surplus revenues or reserves.
Netizens and groups have expressed concern over the MIF's timing and supposed rushed approval, but proponent lawmakers maintained that this will help promote development and boost the government's programs.
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Meanwhile, Senator Mark Villar, who is part of the Philippine delegation in Davos, bared that the MIF gained interest from other world leaders during the meeting.
"Marami pong interesado sa Pilipinas at siyempre po sa wealth fund dahil ito ay isang pondo na nakikita nila na magagamit natin para lalong bumilis ang development ng ating bansa, and of course as investors, gusto rin nilang makita na active tayo sa infrastructure at sa mga products or funds that can help the government," Villar said in a separate interview.
[Translation: Many expressed interest for the Philippines and the wealth fund, because this was viewed as a platform to speed up the country's development, and of course for investors, they want to see that we're active in infrastructure and products or funds that can help the government.]
The approved House bill on MIF was transmitted to the Senate last month. Members of the upper chamber have vowed to study the measure with a "fine-tooth comb."

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