MANILA, Philippines – The controversial Maharlika Investment Fund is just a signature away from becoming law, and some economists and academics are making last-minute efforts to urge President Ferdinand Marcos Jr. and his team to revisit the proposal.discussion paper
Whatever the funding source may be, any sovereign wealth fund must be clear: is it for stabilizing government finances, accumulating wealth, or funding projects? Maharlika aims to invest in projects for economic gains. But isn’t this the goal of the government and the budget process anyway? “This means that the public, through their taxes or pensions, could end up bearing the risk of poor investment decisions, while the rewards may accrue to a limited group of people, such as those in power and their associates or managers of the fund.”
“Without anchoring the Maharlika Investment Fund on specific long-term development objectives, [it] may pose macroeconomic risks to become prone to exhaustion when the political environment is unstable or incumbent officials prioritize short-term goals,” the discussion paper read.