THE MAHARLIKA Investment Fund was finally passed on May 31, 2023 with the House of Representatives adopting the Senate version of the bill. There was an overwhelming 19 affirmative votes, one negative vote and one abstention.
According to news reports this fund will be the country’s” first-ever sovereign wealth fund that will optimize national funds by generating returns to support the PBBM administration’s economic goals as set in the Medium-Term Fiscal Framework (MTFF), the 8-point Socioeconomic Agenda, and the Philippine Development Plan (PDP) 2023-2028.”
What do we know about the Maharlika Investment Fund aside from being mortified that such a measure will not augur well for us even if its implementation is still quite vague in our minds. Although the implementing rules and guidelines are not yet out, many are skeptical that the economy may go further downhill from here.
A survey conducted by the University of Mindanao’s Institute of Popular Opinion on Davaoeños’ perception and awareness on the Maharlika Investment Fund, shows that 59% of the respondents believed it would likely be mismanaged while an equally large number, 34% are unsure. A very small percentage said the sovereign investment fund can be managed transparently.
IPO’s Dr. John Vianne Murcia said in a press conference last week that the distrust as shown in the figures could be due to past negative experience in fraudulent investment schemes. Others are wary of the investment fund being managed under this administration.
Where will we get the funds? News reports said that the Land Bank of the Philippines and the Development Bank of the Philippines will pitch in P50 billion and P25 billion each. The national government is contributing P50 billion, composed of the Bangko Sentral ng Pilipinas’ dividends.
The challenge of the government now is how to manage its powerful communication machinery to explain to us, ordinary mortals, how the fund can benefit the majority of the Filipino people. Until then, we will be sitting quietly at the peanut gallery.
