Newly enacted Maharlika Investment Fund to serve as vehicle for growth

President Ferdinand R. Marcos, Jr. signed into law Republic Act No. 11954, otherwise known as the Maharlika Investment Fund (MIF) Act of 2023, establishing the Philippines’ first sovereign wealth fund aimed at boosting the country’s economic growth, on July 18, 2023 at the Malacañan Palace in Manila.

The Fund is designed to catalyze economic development and accelerate the country’s growth by optimizing the use of government financial assets and promoting their intergenerational management.

The bill underwent a rigorous deliberation process in the Congress and was approved on May 31, 2023. The timely passage of the Philippines’ first sovereign wealth fund demonstrates the PBBM administration’s commitment to pursue its goals for economic growth.

“Congress passed a game-changing measure––the Philippines’ first-ever sovereign investment fund––that could accelerate infrastructure development in the country, create a lot of high quality jobs, attract more foreign investors, and propel the country towards higher growth,” Finance Secretary Benjamin E. Diokno said.

The establishment of the MIF will complement the government’s existing mechanisms to finance priority projects in pursuit of the government’s goals outlined in the Medium-Term Fiscal Framework (MTFF), 8-Point Socioeconomic Agenda, and the Philippine Development Plan (PDP) 2023-2028. As an additional source of funding, 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 (IFP) list.

Within the MIF will be sub-funds classified according to objectives––one with a long-term horizon focused on investing in profitable infrastructure, and another sub-fund with a short- to medium-term horizon focused on investing in capital market assets such as fixed income securities and stocks.

The Maharlika Investment Corporation (MIC) will be created to 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