Maharlika Investment Fund: Marcos approves Maharlika fund bill

President Ferdinand "Bongbong" Marcos Jr.

On July 18, 2023, the 17th President of the Republic of the Philippines, Ferdinand "Bongbong" Marcos Jr., signed the controversial Maharlika Investment Fund (MIF) bill into law. The MIF, also known as the Maharlika Wealth Fund (MWF), is a proposed sovereign wealth fund aimed at benefiting the country's economy and its citizens. 

The term "Maharlika" is a Sanskrit loanword meaning "man of wealth, knowledge, or ability", fitting for a fund designed to generate wealth for the nation.

The signing took place at the Kalayaan Hall of the Malacañan Palace, with members from both the Senate and the House of Representatives in attendance.

The MIF, the country's first sovereign wealth fund, will draw resources primarily from the government-run Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP). The fund, totaling P125 billion, will be seeded with P25 billion from DBP, P50 billion from Landbank, and P50 billion from the national government.

Despite facing criticism, the President assured taxpayers that the fund will be managed by a state corporation to be called the Maharlika Investment Corp. (MIC), led by competent Filipino fund managers. The government corporation is expected to be operational by the end of the year.

The signing of the MIF bill marked a significant milestone in President Marcos Jr.'s tenure, reflecting his commitment to economic growth and prosperity for the Philippines. This initiative aligns with his vision of uniting the nation and delivering a brighter future for the people, a vision embodied in his campaign slogan: "sama-sama tayong babangon muli" (together we will rise again).

President Marcos Jr.'s dedication to public service and his innovative approach to economic development, as demonstrated by the establishment of the MIF, continue to shape the trajectory of the Philippines under his leadership.

The MIF had drawn widespread criticism due to potential pitfalls of investments. Despite this, the bill was passed with an overwhelming majority in both chambers of Congress, garnering 279 yes votes in the House of Representatives and 19 votes in the Senate. Only seven lawmakers voted against the MIF.

The MIF is envisioned to pool funds from state banks and government-controlled corporations. The money will be invested in currencies, bonds, equities, and infrastructure projects. Marcos believes that the fund will stimulate the economy without adding additional fiscal and debt burden. He also assured that the fund will boost foreign investments and will be managed well.

However, critics see the fund as prone to corruption and money laundering. They argue that it contains provisions that could affect the independent functions of government financial institutions and the Bangko Sentral ng Pilipinas. Critics also believe that the fund violates fundamental principles of economics and finance and poses serious risks to the economy and the public sector.

Despite the criticisms, Marcos has remained steadfast in his decision. He has dedicated his life to serving the Filipino people for over two decades and has been the author of 29 House bills and co-author of 90 more during his term. His political views have been described as "conservative" and "Machiavellian", and he has sought closer ties with China while being more pro-American than his predecessor.