Marcos: MIF a magnet for capital as PH poised for robust growth

The Philippines' sovereign wealth Maharlika Investment Fund is meant to draw capital financing from overseas to boost economic growth, President Ferdinand "Bongbong" Marcos Jr. said on Tuesday.

At the World Economic Forum country roundtable, Marcos expressed confidence that the country is in position to enter a sustained period of robust economic expansion in the next two years. 

''The Maharlika Investment Fund is designed to serve as a magnet for equity financing from abroad and a vehicle for driving long-term growth without compromising efforts towards fiscal consolidation,'' Marcos said.

''Furthermore, we are actively fortifying trade and economic ties across the region to promote inclusive cooperation in a time of geoeconomic fragmentation,'' he added. 

In front of business leaders in Australia, Marcos said the MIF shows his administration's dedication to get sufficient funds for priority programs.

He said the country's overhaul of fiscal incentive structures and responsive policies play a pivotal role in promoting private sector participation.

Marcos signed into law Republic Act No. 11954 or the Maharlika Investment Fund Act of 2023 in July, with the aim to tap state assets for investment ventures to generate additional public funds.

The law creates the Maharlika Investment Corp. (MIC), a government-owned company that will manage the MIF—a pool of funds initially sourced from state-run financial institutions that will be invested in high-impact projects, real estate, as well as in financial instruments.

Marcos, who just came back from a working visit in Germany and state visit in Czech Republic, said his administration is actively focusing its policies on galvanizing foreign investments to generate a broadly beneficial investment boom.

''Clearly, the Philippines is in a prime position to enter into a sustained period of robust economic expansion over the next couple of years,'' Marcos said.

''I extend an invitation to our guests and partners here today to join us in this exciting new phase. The members of economic team are here today ready to discuss those opportunities that I speak of in greater depth,'' he added.

''Our economic liberalization measures signal the dawn of a new era for investments here in the Philippines,'' Marcos said.

''Now, international firms are welcome to invest in a wider range of high-impact sectors, form joint ventures with Filipinos, or even fully own domestic enterprises and select renewable energy projects,'' he added. 

He said investors could depend on expedited processes and improved ease of doing business with the newly established Green Lanes for Strategic Investments.

Marcos said this would directly address binding constraints to investments ''that have long impeded the flow of capital into the country.''