FRUITFUL PARTNERSHIP. House Speaker Ferdinand Martin G. Romualdez (2nd from right) leads the Philippine delegation in a roundtable discussion with foreign business leaders at the sidelines of the 2024 World Economic Forum held at the Hotel Belvedere in Davos on Wednesday (Jan. 17, 2024, Switzerland time). Romualdez said the Philippines is looking forward to a “fruitful partnership” with investors who have expressed interest in investing in the country through the Maharlika Investment Fund. (Photo courtesy of Speaker Romualdez’s office)
MANILA – The Philippines is looking forward to a “fruitful partnership” with investors who have expressed interest in investing in the country through the Maharlika Investment Fund (MIF), House Speaker Ferdinand Martin G. Romualdez said Wednesday (Switzerland time).
"I am heartened and thankful for the interest we have received from both local and foreign investors who have recognized this as the most opportune time to invest in the MIF," Romualdez told top-level representatives from leading international business and interest groups during the "Breakfast Interaction with the Philippine Delegation to the World Economic Forum" held at the Hotel Belvedere in Davos.
"We are extremely optimistic in the continued growth of the Philippine economy and the potential of the MIF and look forward to a fruitful partnership with our investors as we build a better, brighter future for our countrymen," he said.
The breakfast gathering provided a venue for the Philippine delegation to present investment opportunities in the country, explain the features of the MIF, and answer concerns raised by the guests.
Among the key issues discussed during the breakfast meeting include concerns about the stability and predictability of policies, the challenge and potential of digitalization, as well as the critical role in the progress and development of reliable energy supply.
Romualdez cited the robust growth of the country's economy under the visionary leadership of President Ferdinand R. Marcos Jr., and the continuing reforms to make the country more investor-friendly.
He said that like the rest of the world, the Philippines also experienced challenges principally caused by the coronavirus pandemic that hit local industries hard.
"However, we are indeed quite fortunate to have a President determined to revive the country’s economy. In the past two years I have seen him assemble a team of highly competent technocrats and civil servants, earn the confidence of the business community, and continue to engage relevant stakeholders to achieve economic growth, and the agenda for prosperity," he said.
As a result of such efforts, he said the country has seen its gross domestic product (GDP) expand by 5.9 percent in the third quarter of 2023, with GDP growth forecasts for the fourth quarter pegged at 6.2 percent.
"There is much promise that beyond the country’s economic recovery, there is also room for tremendous growth. We have been looking at ways of sustaining this momentum, and one of the key factors lies in finding innovative solutions and improving existing ideas to address long-standing issues," Romualdez said.
"One of these solutions developed by the country’s legislative and executive branches is the establishment of its first-ever sovereign wealth fund. Called the Maharlika Investment Fund, or the MIF, it is envisioned as an investment vehicle for government programs and projects aimed at promoting the country’s growth and social development," he said.
Created through legislation in 2023, the MIF will be sourced from both the public and private sectors, locally and internationally. Foreign and domestic capital will be co-investors to finance the country’s economic development, mainly through investments in commercially viable projects.
The MIF was introduced by President Ferdinand R. Marcos Jr. to the international community during the Fund’s soft launch at the 2023 WEF annual meeting.
The Fund will be invested in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate and high-impact infrastructure projects, and projects that contribute to the attainment of sustainable development.
"With the government’s full support, the MIF will be stable, profitable, and economically sound. As the President has said, it will be run professionally and without undue political influence. Skilled, experienced managers will handle the operations to preserve and enhance the value of the fund, with auditing mechanisms and financial safeguards in place," Romualdez said.
Romualdez also pointed out that being a former banker himself, he has seen over 70 countries establish their versions of sovereign wealth funds (SWFs), with an over 90-percent success rate.
"We hope to integrate the best practices of these nations with SWFs while remaining responsive to our country’s development needs," he said.
Romualdez said the Philippine Senate and the House Representatives are now in sync in efforts to introduce constitutional reforms to create a framework that will be conducive to fostering a competitive, inclusive, and robust economic environment.
"These reforms, one of which is to allow more flexibility on the entry of foreign direct investments in the country, provide long-term economic viability for many of our industries and will enable us to better adapt to the ever-evolving global landscape. Said reforms are not just timely but also long overdue, and I am honored to witness this process unfold," he added.
With Romualdez during the breakfast forum were Maharlika Investment Corporation president and CEO Rafael Consing Jr., Energy Secretary Raphael Lotilla, Bangko Sentral ng Pilipinas Governor Eli Remolona, Permanent Representative to the World Trade Organization Ambassador Manuel AJ Teehankee, Philippine Ambassador to Switzerland Bernard Faustino Dy, and BSP Deputy Governor Bernadette Romulo-Puyat. (PNA)
