DOF: No budget yet for Maharlika in 2025 as investments yet to be identified

The country’s very first sovereign wealth fund has yet to make any investments since its establishment in 2023. 

Finance Secretary Ralph Recto on Wednesday said there is no allocation for the Maharlika Investment Fund under the proposed P6.35 trillion national budget for next year. 

“First of all, there is no subsidy in the 2025 NEP (National Expenditure Program) for Maharlika. Admittedly, it is taking time to identify investments that the Maharlika can make,” said Recto during the Development Budget Coordination Committee briefing at the Senate. 

“As you know, it is like a start up. We just passed the law last year. So they have been in operation for about six [or] seven months right now, so it’s like a start up,” he added.

President Ferdinand Marcos Jr. signed in July 2023 the Republic Act No. 11954, which seeks to tap state assets for investment ventures to generate additional public funds. 

Marcos believes that the MIF has the potential to reduce the government's burden to finance infrastructure through borrowings. 

Recto also said that the Maharlika Investment Corporation has yet to find employees. 

“I think they’ve found their office already, they are looking for employees, they are determining the pay packages to be given to the employees of the Maharlika and they are scouting for investments,” he added.

The Finance chief, who also serves as chairperson of the MIC, expressed hope that “within the year, there will be decisions where to invest.” 

The state-run firm is governed by a nine-member board of directors made up of the Finance secretary as chairperson, the MIC president and CEO, the Land Bank of the Philippines president and chief executive officer, the Development Bank of the Philippines president and CEO, two regular directors, and three independent directors from the private sector.

The Landbank and the Development Bank of the Philippines have already transferred P50 billion and P25 billion, respectively, to the Maharlika Fund in 2023. 

The national government will contribute P50 billion from the following sources:

• Bangko Sentral ng Pilipinas' total declared dividends;
• National government's share from the income of PAGCOR Properties, real and personal identified by the DOF-Privatization and Management Office;
• Other sources such as royalties and/or special assessments

—AOL, GMA Integrated News