MANILA - Rafael Consing, President and CEO of Maharlika Investment Corporation (MIC), has affirmed that the newly established Maharlika Investment Fund (MIF) is poised to significantly enhance the nation's economic growth, create jobs, and foster sustainable development.
According to Philippines News Agency, who spoke during the Pre-SONA Special broadcast on the People's Television Network, the MIF is designed as a sovereign wealth fund by the government to channel investments into various sectors. Consing highlighted that the fund is not only focused on financial returns but also on achieving socio-economic development goals. A recent study by Maybank underlines the fund’s potential, suggesting that each peso invested by MIF could yield a multiplier effect of approximately 2.1 to 2.5 times in economic impact.
The focus of the MIC under the MIF will be on enhancing electricity services in rural areas, where about 52 percent of the Philippines' population resides. Consing explained that improving power infrastructure in these regions is crucial for attracting investments and increasing local incomes, which in turn boosts overall consumption.
Under the provisions of Republic Act 11954, which President Ferdinand R. Marcos Jr. signed into law on July 18, 2023, the MIF is authorized to invest in a diverse portfolio including foreign currencies, fixed-income instruments, corporate bonds, joint ventures, real estate, and high-impact infrastructure projects.
Further detailing the fund’s operational roadmap, Consing mentioned that the MIC is nearing its operational phase and expects to commence its initial investments by the year’s end, pending the approval of its investment and risk management framework by the Board this Thursday. He emphasized that this framework is crucial as it outlines the detailed policies, strategies, and risk management practices essential for guiding the corporation’s investment decisions.
In a communication with the Philippine News Agency, Consing reiterated that the investment and risk management framework is mandated by law, specifying that MIC must adhere strictly to these guidelines before pursuing any investment activities, ensuring compliance and prudence in managing the nation's resources.