Business and Economy
Maharlika Fund crucial in boosting PH investments: DBP head
MANILA – The passage of the country’s pioneering Maharlika Investment Fund (MIF) is crucial in boosting Philippine investments and sustaining its growth momentum, said veteran banker and current president and CEO of the Development Bank of the Philippines (DBP) Emmanuel Herbosa.
In a statement on Thursday, he said the establishment of a sovereign wealth fund (SWF) could help the country broaden its investments, especially in critical areas like food, water, green energy, agro-industrial ventures, telecommunications, public infrastructure and road networks tollways.
“From my personal standpoint, the creation of an SWF is a superb opportunity to address the dearth in sources of long-term capital which is integral to support these capital-intensive investments,” Herbosa said.
He explained that the SWF is closely aligned with DBP’s operating principle of bolstering economic additionality through timely and meaningful support of critical industries and sectors.
Moreover, the SWF, he said, can offer better rates of return that will result in a more significant socio-economic impact.
After President Ferdinand R. Marcos Jr. certified the passage of the MIF as urgent, House Bill 6608 received solid support from 90 percent of the members of the House of Representatives with 282 out of the 312 congressmen officially named as its co-authors.
On Dec. 15, the bill was approved on third and final reading with 279 affirmative votes, six against, and no abstentions.
The approval of the bill came after exhaustive floor deliberations as it underwent several refinements.
“The introduction of additional safeguards in the proposed measure such as heavy scrutiny by the Commission on Audit apart from regular examinations by both an internal and external auditor has assuaged concerns of various sectors and ensures that the fund will be adequately shielded from fraud, abuse, and undue political interference,” Herbosa said.
“The provision of sovereign guarantees for specific contributions adds another layer of confidence in the sustainability, reliability, and integrity of the SWF especially in funding projects with long-gestation periods while attracting private sector and even foreign funders that would ensure transparency and greater accountability in managing the fund,” he added.