Various business and think tank groups have strongly opposed the planned Maharlika Wealth Fund , a Philippine government version of a Sovereign Wealth Fund , stating the proposal under House Bill 6398 will not amount to wealth creation but instead puts at risk peoples’ pension money in a fund filled with “infirmities”.
Proponents of the bill are House Speaker Martin Romualdez and Senior Deputy Speaker Ilocos Rep. Ferdinand Alexander “Sandro” Marcos, cousin and son of President Ferdinand Marcos Jr., respectively. Albay Representative Joey Salceda, who chairs the House ways and means committee, is also a strong defender of the measure.
In contrast, the groups said, the Philippines has neither commodity-based surpluses nor surpluses from external trade and SOEs. Requiring the Land Bank of the Philippines and the Development Bank of the Philippines to fund the SWF on the ground that they invest in government securities is in no way a creation of wealth. The LBP and DBP deposits exist because of the requirement for GOCCs to deposit their funds in government financial institutions.
“Pension funds are intended to pay for pension liabilities, benefits, salary, and housing loans of their members,” the groups added. The groups also question the bill’s provision requiring the Bangko Sentral ng Pilipinas to contribute 50 percent of its cash dividends to the national government is problematic in many aspects.