Philippine President Ferdinand Marcos Jr. unexpectedly halted the rollout of the nation’s inaugural sovereign wealth fund on Wednesday, mere months after endorsing the project to international investors.
The suspension is intended to reassess the implementing rules and regulations, ensuring the fund’s primary goals align with national development and that adequate measures are in place for transparency and accountability, as indicated by the Office of the Executive Secretary.
Previously, Marcos Jr. had actively promoted the Maharlika Investment Fund overseas. The official launch date, however, remained undisclosed. Some experts raised questions about the fund’s financial backing, transparency, and administrative framework.
The initial financial support was to be provided by the government in collaboration with two state-owned banks: Land Bank of the Philippines and Development Bank of the Philippines, committing a combined total of 75 billion pesos ($881 million). Notably, while Landbank confirmed its capital adequacy after a 50 billion peso contribution, DBP has sought “regulatory relief” due to potential capitalization constraints.
An anonymous senior official voiced apprehensions about the fund’s long-term viability, highlighting potential liquidity challenges faced by the involved banks and the subsequent risk to the national economy. The board for the managing Maharlika Investment Corp. is still pending announcement.
BusinessNewsAsia