A look back at Maharlika Fund two years later

Once hailed as a key economic priority of President Ferdinand “Bongbong” Marcos Jr., the Maharlika Investment Fund (MIF) was a key point in his 2023 State of the Nation Address (SONA), only to be noticeably missing in his 2024 speech, raising questions about its progress.

The Philippines’ first sovereign wealth fund was signed into law in July 2023 through Republic Act No. 11954, establishing the Maharlika Investment Corporation (MIC)—the state-run entity tasked with managing the fund and investing government assets to generate additional public revenue.

“For strategic financing, some of the nation’s high-priority projects can now look to the newly established Maharlika Investment Fund, without the added debt burden,” Marcos said in his SONA in 2023.

“In pooling a small fraction of the considerable but underutilized government funds, the Fund shall be used to make high-impact and profitable investments, such as the Build-Better-More program. The gains from the Fund shall be reinvested into the country’s economic well-being,” he added.

Under the law, the MIC was granted an authorized capital stock of P500 billion, with P375 billion in common shares available for subscription by the national government, its agencies or instrumentalities, government-owned and -controlled corporations (GOCCs), and government financial institutions (GFIs).

In November 2023, Rafael Consing —  former executive director of the Office of the Presidential Adviser for Investment and Economic Affairs — was appointed as MIC president and chief executive officer.

First moves

After being skipped in the 2024 SONA, the MIC has made a handful of developments.

With just days before the President makes a report to the nation next Monday, July 28, GMA News Online looked at what the MIC has accomplished so far.

In January 2025, the MIC made its first investment by acquiring a 20% stake in Synergy Grid and Development Philippines Inc. (SGP), gaining two board seats in the company and another two in the National Grid Corporation of the Philippines (NGCP).

A month later the MIC signed a memorandum of understanding (MOU) with Thai conglomerate Charoen Pokphand Group Co. Ltd. (CP Group) that would provide for the establishment of a private equity fund with a capital target of up to $1 billion.

“This partnership will lay the groundwork for a multi-sectoral investment initiative that will drive long-term economic growth while reinforcing the Philippines’ position as a premier investment destination,” Consing said in February.

Under the agreement, a steering committee would drive project selection, fund structuring, and investor engagement, with the first capital close expected within the next nine to 12 months. Key investment areas include agri-food modernization, digital and e-commerce expansion, and sustainable energy and infrastructure.

That same month, the MIC inked another agreement — a $76.4-million bridge loan facility to Makilala Mining Company Inc. (MMCI), the Philippine affiliate of Australia-based Celsius Resources Limited that operates copper and gold projects in the country.

“Our investment decision reflects a shared commitment to the sustainable, inclusive, and regenerative development of the MCB Project,” Consing said.

The loan is intended to finance early-stage development works for the Maalinao-Caigutan-Biyog Copper-Gold Project (MCB) in Kalinga. This includes updating MMCI’s front-end engineering design (FEED), constructing a main access road in collaboration with the Kalinga Provincial Government, and funding skills-based training for the indigenous community.

Under the agreement, the facility will be split into two tranches — the first will be available nine months from signing, and the second subject to the completion of the FEED and an updated feasibility study, up to 24 months from signing.

The loan carries a 12.5% fixed interest rate compounded quarterly, and gives MIC a right of first offer on any sale or transfer of MMCI’s assets and/or shares.

In May, the MIC then said it was in preliminary talks with Dubai Ports World to pursue logistics development projects in the Philippines, with an internal study underway to determine how much investments are needed for local port development.

Most recently, this July, the MIC signed an MOU with the Department of Information and Communications Technology (DICT) to invest in “critical digital infrastructure projects” aimed at delivering long-term returns and supporting inclusive growth across geographically isolated and disadvantaged areas (GIDAs).

“By prioritizing digital infrastructure today, we are not only enabling inclusive growth and innovation but also securing opportunities for future generations of Filipinos. Maharlika is proud to play a key role in shaping a more connected, future-ready Philippines,” Consing said.

While these developments mark a starting point for the MIC, the agency has yet to announce additional deals.

Investment process

According to the MIC, its due diligence process to evaluate and select investments includes economic assessment on the broader economic impact and alignment with strategic goals, along with financial assessment on the viability and potential returns of the investment.

It also takes into account operational assessment of the feasibility and management capabilities of the investment, sustainability assessment on the environmental and social impact, and legal assessment on compliance with legal and regulatory requirements.

Investment proposals are initially reviewed by the Investment Committee, before being presented to the Board for final approval.

At the helm of these decisions is the MIC Board, composed of representatives from both the government and the private sector.

It is currently chaired by Finance Secretary Ralph Rector and vice-chaired by MIC president and CEO Consing. It counts as members Land Bank of the Philippines president and CEO Ma. Lynette Ortiz, Development Bank of the Philippines president and CEO Michael de Jesus, and independent directors Stephen Anthony CuUnjieng, German Lichauco II, and Roman Felipe Reyes.

Moving forward, investors and stakeholders are awaiting whether it will reclaim a spot in Marcos’ SONA on July 28,  or continue to operate in the background.—BM/LDF/NB, GMA Integrated News