The final stage of formulating the implementing rules and regulations (IRR) for the Maharlika Investment Fund is underway, as President Marcos has yet to sign the MIF bill into law.
The government is working diligently to establish the Philippines’ inaugural sovereign wealth fund.
Finance Secretary Benjamin Diokno revealed in a recent television interview late on Thursday that the IRR for the MIF is already prepared, despite the bill’s final version being transmitted to the Office of the President just this week.
Diokno clarified that the process of crafting the IRR commenced immediately after the MIF bill received approval and is now in its concluding phase.
The creation of the MIF was sanctioned by Congress in May, although critics intend to challenge it before the Supreme Court.
As per the bill, the national treasurer and founding government financial institutions are responsible for promulgating the IRR within 90 days from the law’s effectiveness.
Diokno asserted that they do not plan to utilize the entire 90-day period.
Finance Undersecretary Maria Luwalhati Dorotan-Tiuseco explained that the crafting of the IRR was undertaken in anticipation of the MIF’s signing and will not be released until the law is enacted.
According to a legal expert, a draft IRR is permissible as long as no actions or implementations are carried out based on the IRR.
Diokno anticipates that the President will sign the MIF within a week or two.
Previously, he expected the bill to be signed prior to the President’s second State of the Nation Address.
Marcos has expressed his intention to sign the bill as soon as he receives it, but it requires thorough review and complete staff work from the Office of the President, which is currently underway.
Diokno reiterated his confidence in the success of the fund, emphasizing his responsibility to ensure its prosperity.
The economic team is actively seeking individuals to lead the Maharlika Investment Corp.
He further highlighted that they have a range of projects with high returns that have undergone extensive studies, fueling his optimism for the MIF’s prospects.
The primary objectives of the MIF are to execute and sustain impactful infrastructure and development projects, alleviate fiscal constraints, and maximize the expected returns on the country’s investments.
The fund aims to invest available funds from government instrumentalities based on their respective mandates.
The economic team emphasized that the success of the MIF would enable the country to reduce its reliance on foreign and domestic loans to fulfill annual budgetary requirements.
They emphasized that investing in Maharlika would provide government financial institutions with higher medium to long-term returns compared to their 10-year average returns.
Based on the final version of the bill, the initial capitalization will include P50 billion from the Land Bank of the Philippines and P25 billion from the Development Bank of the Philippines.
The estimated average return for Maharlika is projected to be approximately 8.6 percent, surpassing Landbank’s 4.23 percent and DBP’s 3.59 percent.
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