Press Releases

Salceda on Maharlika: Strategic partners, co-investors to be engaged ‘from the start;’ House tax chair expects announcement of signing by SONA

June 21st, 2023

House Ways and Means Chair Joey Sarte Salceda (Albay, 2nd district) said that he expects President Marcos to announce the enactment of the Maharlika Investment Fund Act during the State of the Nation Address (SONA), and that “strategic partners and co-investors are already being engaged in preparation for its launching.”

Salceda made the statement following the signing of the enrolled bill today by both houses of Congress, the final step before it reaches the President’s desk.

“I had discussions today with the Bureau of Treasury during our meeting with the World Bank and IMF Joint Mission. Co-investors and strategic foreign partners are being engaged right now, so that we can hit the ground running once MIF is launched,” Salceda said.

Salceda also emphasized the need for technical assistance from the IMF, World Bank, and the International Finance Corporation for setting up the investment fund.

“The expertise of the multilaterals will ensure that we start on strong footing. There are three ways they can help us. First, their credibility will help attract foreign investors. Second, their presence will encourage good corporate governance and accountability in the MIF. Third, their financial resources are staggering. World Bank alone has been able to support around 115 billion USD in commitments every year.”

“And they can be co-investors or strategic partners, themselves, once the institutions within MIF are organized.”

MIF will boost Philippine stock market

Salceda added that “the government also wants to have the MIF listed in the stock market, as a market development measure.”

Salceda told the IMF-World Bank team that the MIF “could help solve liquidity problems on the equities side of Philippine capital markets. There are only 286 listed companies in the Philippine Stock Exchange and MIF would immediately cause waves once listed.”

“It’s a good investment option for the capital markets because it would expose them to a diverse and potentially high-yielding portfolio. It’s like investing in Philippine growth, which has plenty of runway. Plus, it has environmental and social governance structures embedded in its charter. So, on ESG ratings, it should do well.”

“Being listed in the stock exchange is also good for MIF, because it will subject the fund to greater public scrutiny, which encourages accountability.”

“I discussed listing with the Bureau of Treasury, and it’s a goalpost, down the line,” Salceda concluded.

Salceda was chair of the technical working group which drafted the House version of the MIF charter.

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