President Ferdinand "Bongbong" Marcos Jr. on Tuesday signed into law the Maharlika Investment Fund which will tap state assets for investment ventures to generate additional public funds.
"Through the fund we will leverage on a small fraction of the considerable but underutilized investable funds of the government and stimulate the economy without the disadvantage of adding additional fiscal and debt burden," he added. In the signing of the new law, Marcos said those who would manage the fund must ensure that it is "well-run."
The fund could be used to finance the government's infrastructure and even agriculture projects without acquiring more debts, according to Marcos. The Senate had amended its version by prohibiting state pension and insurance funds from investing in the MIF, a provision which is already provided under the House of Representatives' version approved on third and final reading last December.
The document from PCO states that investment in the MIF is an "investment diversification opportunity and a means to maximize returns for the two founding GFIs.