President Ferdinand 'Bongbong' Marcos Jr. on Tuesday, July 18 officially signed the controversial legislative measure that seeks to establish a Maharlika Investment Fund (MIF) or sovereign wealth fund into law.
The signing of Republic Act No. 11954 or An Act Establishing the Maharlika Investment Fund was witnessed by Senate President Miguel ‘Migz’ Zubiri, House Speaker Martin Romualdez, Finance Secretary Benjamin Diokno, Budget and Management Secretary Amenah Pangandaman, several lawmakers, and government officials at Malacañang Palace.
In his speech, Marcos regarded the MIF as an “extremely important measure."
“We mark today a momentous occasion in the history of our nation as I sign into law the Maharlika Investment Fund Act. The MIF is a bold step towards our country's meaningful economic transformation just as we are recovering from the adverse effect of the pandemic,” Marcos said.
“We are now entering a new age of sustainable progress, robust stability, and broad base empowerment,” he added.
The President said the government will utilize the investment fund to “stimulate the economy without the disadvantage of adding additional fiscal and debt burden.”
Marcos then noted that the decision on the MIF will be “financial” and not “political”.
He assured that "highly competent personnel with a good track record and outstanding integrity" will be tapped to manage the sovereign fund.
The Chief Executive earlier certified the bill as urgent in both chambers of Congress — the Senate and the House of Representatives.
The MIF is the first-ever sovereign wealth fund in the country's history.
It will have an initial seed money of ₱125 billion, with ₱50 billion coming from the Land Bank of the Philippines (LBP), ₱25 billion from the Development Bank of the Philippines (DBP), and ₱50 billion from the national government.
The overall investment returns or the money that will be generated from the investments will be allocated for national government programs and long-term projects such as dams, electric grids, and among others.
