THE Philippine Stock Exchange, Inc. (PSE) voiced its support for the proposed creation of the Maharlika Investment Fund (MIF), saying that it would help develop the country’s capital markets.
PSE President and Chief Executive Officer Ramon S. Monzon said in a statement that the local bourse operator is in favor of House Bill (HB) No. 6608, which seeks to establish the sovereign wealth fund called MIF.
“Since the MIF seeks to attract and invest capital for big-ticket infrastructure projects, sustainable green and blue infrastructures and countryside development, we believe these investments will create a multiplier effect that would attract more fund-raising activities and portfolio investments and in turn contribute to the growth and development of our capital markets,” Mr. Monzon said.
“The PSE supports the recently approved HB No. 6608 establishing the MIF. The PSE’s primary mission is to facilitate the flow of capital into more productive and beneficial channels and as a result, contribute to efficient capital formation for the country,” he added.
On Thursday, the House of Representatives passed the bill on third and final reading, with 279 lawmakers voting for it, six voting against it, and zero abstaining.
President Ferdinand R. Marcos, Jr. previously certified the bill as urgent.
Under the proposed measure, the MIF will source its seed capital worth P110 billion from the dividends of the Bangko Sentral ng Pilipinas, and the investible funds of state-led financial institutions Land Bank of the Philippines and Development Bank of the Philippines.
Mr. Marcos previously said that the MIF’s creation would help entice more investments and economic development in the country.
The government is reportedly going to use the MIF to invest in foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure projects. — Revin Mikhael D. Ochave