Maharlika investment fund set to drive economic growth and reduce poverty

The Maharlika Investment Fund (MIF) is poised to significantly boost the Philippines' economic growth, reduce poverty, and create jobs, according to Rafael Consing, President and CEO of Maharlika Investment Corporation (MIC).

Consing highlighted that the MIF, a sovereign wealth fund established by the government, aims to support and sustain the country's robust economic growth while promoting sustainable development. "The Maharlika Investment Fund is designed to invest in key areas that will drive economic progress," he stated during the Pre-SONA Special aired on People’s Television Network.

The MIF’s primary objectives include generating returns on investment and achieving socio-economic development goals. Consing referenced a study by Maybank, which estimated the MIF's multiplier effect at 2.1 times. "Maybank's analysis indicates that for every peso invested, the impact ranges from 2.10 to 2.5 pesos. We are confident in this projection and aim for such an impact," he noted.

A major focus of the MIF is improving electricity services in rural areas, home to about 52 percent of the population. "Power is the main driver of progress," Consing explained, emphasizing that better electricity services will attract more investments, boost incomes, and increase consumption in these areas.

Enacted under Republic Act (RA) 11954, signed by President Ferdinand R. Marcos Jr. on July 18, 2023, the MIF will invest in a diverse portfolio, including foreign currencies, fixed-income instruments, corporate bonds, joint ventures, mergers and acquisitions, real estate, and high-impact infrastructure projects that support sustainable development.

Consing announced that the MIC aims to make its first investment by the end of the year. "We have an investment and risk management framework ready for Board approval this coming Thursday. This framework is crucial for initiating our first investment," he said.