Marcos: Malaysians ‘most careful’ after 1MDB, interested in Maharlika Fund

KUALA LUMPUR — President Ferdinand “Bongbong” Marcos Jr. on Thursday said that Malaysian business leaders, who are "the most careful" when it comes to investing in sovereign funds due to their own country's experience, have expressed interest in the Maharlika Investment Fund.

To recall, Malaysia's now-insolvent sovereign wealth fund 1Malaysia Development Berhad (1MDB) was embroiled in a multibillion-dollar corruption and graft scandal, with former prime minister Najib Razak convicted and jailed for criminal breach of trust, abuse of power and money laundering after allegedly funneling millions of dollars from the fund to his own accounts. He is currently serving a 12-year sentence.

In a press conference, Marcos was asked how he promoted the Maharlika Investment Fund during his three-day state visit to Kuala Lumpur.

Marcos said that it is all about assuring Malaysian firms that the MIF will not be abused like 1MDB was.

“Their experience here is not going to be a detriment, in fact it is a way for them to… they are the most careful of all,” he said.

“Hindi mag-iinvest ‘yan kung makita nilang, 'Naku, pareho ito doon sa naging problema dito.' As long as you can assure them that what their poor experience… there are terrible things that happen here, hindi mangyayari sa fund natin,” Marcos said.

The President reiterated his vow that the MIF will be free from political influence, saying that the government will have representatives on the Board of Directors but that they will not be part of the decision-making on investments.

“Again, if you remember, I’m constantly saying it is going to run professionally and without political influence. Of course the government has an interest in the fund so we have representatives on the Board but the day-to-day decisions as to what investments will be made, it is left to the financial managers that will be put,” Marcos said.

“With that assurance, I think the assumption is that everyone has learned the lessons from what happened with own… one of their own sovereign funds,” he added.

Marcos also answered in the affirmative when asked if Malaysian businesses have expressed interest in the MIF.

“Yes, lahat naman nag-express ng interest because negosyo ‘yan eh. Now there’s a new fund, now can we enter… but when you talk especially to private entities, you have to be specific,” Marcos said.

“Sasabihin may pondo kami dito, gusto namin ito, gusto namin tulay, gusto namin healthcare, gusto namin digitalization, gusto namin cybersecurity, gusto namin agri, energy, ‘yun… they have to be specific, once we get to that point then we can talk about the amounts that are going to be invested, and of course by our private sector partners,” he added.

The MIF, which Marcos signed into law earlier this month, will tap state assets for investment ventures to generate additional public funds.

Republic Act No. 11954 was inked by the President despite apprehensions and concerns on the measure, with some lawmakers pointing out the MIF bill's glaring errors and discrepancies as well as its ambiguous provisions.

Meanwhile, Malaysia's highest court had upheld former prime minister Najib Razak's 12-year jail sentence for corruption in the 1MDB financial scandal.

Finance Secretary Benjamin Diokno earlier promised that the country's MIF has transparency and accountability safeguards to prevent another 1MDB from happening. — BM, GMA Integrated News