July 15th, 2023
Rep. Joey Sarte Salceda
15 July 2023
Before the Maharlika Investment Fund, the Philippines was the only major ASEAN economy without a sovereign wealth fund or sovereign investment fund.
We are also among the few major countries with the state banks being dominant players in the financial sector. The other one that’s close to us is Indonesia. So, we have a strong base of investible assets even as we have a massive investment gap.
Finally, we have a highly liquid financial sector and a cash-rich corporate sector with few options for investment in the domestic capital markets.
You combine all of those facts and clearly, one path forward is to create a development-oriented investment option.
In that regard, it’s a massive milestone for the Marcos administration. I say that with some bias perhaps, being the chairman of the technical working group that drafted the law, but I also say that as a finance professional who spent much of my adult life helping move the capital markets.
I have called the MIF PBBM’s weapon of mass development.
Major investment funds are already interested. Moving forward, I will continue to engage the BTr for the implementation of this measure.