SOVEREIGN FUND. Finance Secretary Benjamin Diokno during the Philippine Economic Briefing in Singapore on Thursday (June 15, 2023). Diokno urges Singaporean investors to explore opportunities in the Maharlika Investment Fund after the bill creating the country's first sovereign fund was approved by Congress. (Screenshot from Bangko Sentral ng Pilipinas livestream)
MANILA – Department of Finance (DOF) Secretary Benjamin Diokno has urged Singaporean businesses to explore opportunities in the Maharlika Investment Fund (MIF).
At the Philippine Economic Briefing in Singapore on Thursday, Diokno cited the MIF’s role in the country’s economic development over the next years.
He said the MIF is another source of funding for the Marcos administration’s 194 infrastructure flagship projects (IFPs) that will require a total of USD165 billion in investments.
“The 194 infrastructure projects, I think we want the Maharlika Fund to finance some of them, not all of them. So, we have identified another source of funding for these very important infrastructure projects that will make a difference in the landscape of the Philippine economy,” the DOF chief said.
He said as the country will graduate into an upper middle-income economy within the next two years, it will no longer be entitled to the same official development assistance (ODA) to fund the IFPs.
“So, that is another source of funding,” Diokno added.
He also proposed to create sub-funds such as infrastructure and green funds under the MIF.
“The Maharlika Investment Fund is designed to advance the Philippines’ long-term development goals through the effective intergenerational management of our government financial assets. This will be an important addition to our existing funding mechanisms, with the aim of promoting socio-economic development through investments in strategic, high-return, high-impact sectors, including infrastructure,” he said.
The Congress approved the MIF bill last May 31, which created the country’s first sovereign fund.
Diokno said the DOF is looking forward to the enactment of the bill in the coming weeks.
The government will also explore co-financing opportunities with foreign investors, multilateral institutions, and other international sovereign wealth funds.
“There is a wealth of new investment opportunities for the Philippines and Singapore to explore, and we look forward to writing the next chapters of our growth story with you,” the finance chief said. (PNA)
