MANILA – The Department of Finance (DOF) on Monday expressed support for the revised Implementing Rules and Regulations (IRR) of the Maharlika Investment Fund (MIF) Act, noting that the enhancements are within the bounds of the law.
The DOF said the IRR ensures the independence of the Board of Directors of the Maharlika Investment Corporation (MIC) and allows it more headroom to form credible oversight and risk management bodies while upholding the highest standards of effective fund management.
"The enhancements introduced by the IRR are all within the bounds of the law, meant to give full meaning to the establishment of a strong corporate governance structure," DOF said in a statement.
"Its finalization comes at an opportune time as investors, both local and international, have signified in several investor promotion engagements their robust interest in the country’s first-ever sovereign wealth fund."
Released last Nov. 11, 2023, the revised IRR of Maharlika introduced several amendments to the provisions on the appointment of the Board of Directors of the MIC.
"Most importantly, this affirms the Marcos Jr. administration’s commitment to see the Fund off and running by the end of the year and effectively paves the way for the full operationalization of a well-structured, robust, and effective sovereign wealth fund that will advance the Philippines’ long-term growth," the DOF added.
The MIC will serve as the investment body responsible for the overall governance and management of the Fund and is expected to be fully operational by end-2024.
It will identify financially and commercially viable infrastructure projects to invest in and will formulate investment strategies covering emerging megatrends, such as environment, social and governance, digitalization and health care.
The MIC will be governed by a Board of Directors with nine members chaired by the Secretary of Finance.
The DOF earlier said the MIF is expected to widen fiscal space, ease the burden on local funds and reduce reliance on official development assistance in funding big-ticket projects, such as those specified in the recently approved Infrastructure Flagship Project list. (PNA)