House Committee on Banks and Financial Intermediaries chair and Manila Rep. Irwin Tieng (Photo courtesy of House Press and Public Affairs Bureau)
MANILA – House leaders on Monday welcomed the autonomy of the Maharlika Investment Corporation (MIC) board of directors as a "pivotal milestone" in the Philippine financial landscape.
House Committee on Banks and Financial Intermediaries chair Irwin Tieng said the revised implementing rules and regulations (IRR) of the Maharlika Investment Fund (MIF) fortified the autonomy and governance of the MIC Board.
"We are delighted to witness the culmination of efforts to fortify the MIC through enacting comprehensive and empowering rules," Tieng said. "The strengthened independence of the Board of Directors is fundamental in ensuring prudent and effective decision-making, safeguarding the corporation's integrity and promoting financial stability."
Tieng said the new IRR signifies a crucial step in advancing the governance framework of the MIF that would promote enhanced transparency, accountability, and sound decision-making.
“This move aligns with the ongoing commitment to foster a resilient and progressive financial environment, reinforcing trust and confidence among stakeholders and investors,” Tieng said.
Tieng expressed his gratitude to President Ferdinand R. Marcos Jr. and to all stakeholders, regulatory bodies, and industry experts, whose collective expertise and dedication contributed to the formulation of these new rules.
He said these regulations would have a positive impact on bolstering the country's financial landscape, economic growth, and investment prospects.
Tieng, however, stressed the need for continuous vigilance and adaptability to navigate the ever-evolving financial landscape.
“Sustained collaboration and dedication are key to maintaining the integrity and stability of financial institutions, ultimately for the well-being of the Filipino populace,” Tieng said. “This highlights the need for consistent efforts in safeguarding financial systems and ensuring they serve the people effectively."
House Senior Deputy Speaker Aurelio “Dong” Gonzales Jr., meanwhile, described the revised IRR as the "ultimate safeguard" for the much-awaited Maharlika Investment Fund.
Gonzales said the autonomy of the MIC board of directors fosters an environment where the fund could be managed with unimpeded independence and shielded from any unwarranted political influence.
“The IRRs, approved by no less than President Ferdinand R. Marcos Jr., are a testament to the commitment to reinforce the governance structure of the MIC, ensuring that the board of directors possesses the necessary freedom to administer the fund without external interference, thus bolstering its effectiveness and credibility in the financial landscape,” Gonzales said.
He said the board's independence will enable the MIC to perform its crucial role in investment activities, contributing significantly to the economic growth and stability of the nation.
Gonzales said it is also a significant step towards ensuring fair and impartial management of the corporation's funds.
“It solidifies the commitment to transparent, efficient, and impartial financial management, setting a precedent for enhanced governance in financial institutions,” he said.
The MIC, created under Republic Act (RA) 11954 or the Maharlika Investment Fund Act of 2023, shall act as the sole vehicle for mobilizing and utilizing the MIF for investments in transactions to generate optimal returns on investments while reinvigorating job creation and accelerating poverty reduction by sustaining the economy’s high growth trajectory.
The MIC 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.
President Marcos signed RA 11954 into law in July, establishing the country's first-ever sovereign investment fund.
Members of the economic team 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)
