The Maharlika Investment Fund (MIF) Act of 2023, set to take effect on September 12, 2023, will mobilize funds for significant infrastructure projects, including road networks, tollways, railways, green energy, water resources, agro-industrial ventures, and telecommunications, with a particular focus on environmental, social, and governance (ESG) initiatives and cutting-edge technologies.
The MIF will be managed by the Maharlika Investment Corp. (MIC), which will have an approved capital stock of P500 billion, and its initial funding will come from Bangko Sentral ng Pilipinas dividends, earnings from gaming operators, privatization assets, royalties, and special assessments.
Government financial institutions and state-owned firms may also invest in the MIF, except those providing social security and public health insurance services.
The MIC will have the flexibility to invest in various products and projects, including fixed-income assets, equities, and Islamic investments, and it can issue bonds, debentures, and securities without government guarantees.
The MIF is gaining attention from foreign institutions looking to invest in the Philippines, and private sector participation is expected to play a significant role in its growth.
The MIC’s board will be composed of key government officials and independent directors, with the search for its leadership currently underway.
The IRR includes stringent safeguards to ensure the proper management of the fund, and officials who violate these rules could face substantial fines and jail time.
