MANILA – The Maharlika Investment Fund (MIF) can generate a 0.07-percentage point economic growth annually in the first 10 years of operation and generate about 100,000 direct and indirect jobs, the Department of Finance (DOF) said.
"A fully operational MIF, coupled with an ideal economic backdrop to attract more investors will definitely be major factors that will increase job creation in the country, consequently accelerating the Philippines’ economic growth," the DOF said in a fact sheet released to reporters during its weekly press chat on Friday.
The department said contribution to growth was included in the National Economic and Development Authority (NEDA) paper earlier submitted to the Senate.
"When the full PHP125 billion initial capitalization has been fully paid over the first 10 years of operations, the MIF can generate a 0.07 (percentage point) contribution to Philippine growth annually over the same period," it said.
The DOF noted that the MIF is also projected to produce jobs.
"Due to spillover effects, the value added generated through investment activities in the first 10 years of the Fund is expected to still contribute 0.01 (percentage points) annually to growth over the next 11-20 years," it added.
In contrast, NEDA also projected returns in a scenario where there is no MIF, and the PHP125 billion used for the initial capitalization remains with the founding government financial institutions and the national government.
The PHP125 billion is projected to contribute 0.06 percentage points to the country’s growth and no spillover effects are expected in this scenario.
In another scenario where, in addition to co-investments generated with other parties, the PHP500 billion authorized capital stock of the corporation can be fully paid over the first 10 years of operation, the NEDA estimated that the MIF could generate a 0.22-percentage point contribution to Philippine growth annually.
The creation of jobs, both direct and indirect, is projected at 350,000 while the spillover effects in this scenario are projected to contribute 0.05 percentage points annually to growth over the next 11-20 years. (PNA)