The Department of Finance (DOF) welcomes the release of the timely report from the Milken Institute’s Financial Innovations Labs on the “Best Practices of Sovereign Wealth Funds: The Case for the Philippines” as Senate deliberations on the proposed Maharlika Investment Fund (MIF) bill begin.

The report highlighted the three (3) major principles behind successful sovereign wealth funds:

1. Clear funding sources, objectives, and strategies;

2. Robust governance structure and effective operational/management systems; and

3. Appropriate investment and performance metrics, consistent with the objectives and the mandates of the Fund.

The report also highlighted the value proposition of the Maharlika Investment Fund for both the investors and the country. As demonstrated by the 7.6 percent gross domestic product (GDP) growth rate in 2022, the Philippines’ strong economic fundamentals ensure that it will enjoy a high growth trajectory in the coming years. The MIF will provide an opportunity to invest in critical infrastructure projects in the logistics, telecommunications, and transportation sectors. These projects will increase the future growth potential of the Philippine economy.

House Bill No. 6608, or the “Maharlika Investment Fund Act,” was approved on third and final reading by the House of Representatives on 15 December 2022. Senate Bill No. 1670 was filed on 12 January 2023, which serves as the counterpart bill for the measure approved by the House of Representatives.

The Senate deliberations will enhance the provisions of the existing bill to ensure that the Maharlika Investment Fund will embody these principles of success.