DOF working closely with OP to improve Maharlika’s IRR —Diokno
The Department of Finance (DOF) is in close coordination with the Office of the President (OP) to tweak the implementing rules and regulations (IRR) of the Maharlika Investment Fund (MIF) Act, which has been suspended pending further review, Finance Secretary Benjamin Diokno said. The Department of Finance (DOF) is working closely with the Office of the President (OP) to improve the implementation rules and regulations (IRR) of the Maharlika Investment Fund (MIF) Act, which has been suspended pending further review. This comes after the suspension of the IRR of Republic Act No. 11954 or the MIF Act, by President Ferdinand Marcos Jr. The Finance Secretary Benjamin Diokno, who is currently in Riyadh to promote the Fund to Saudi business leaders, has repeatedly stated that the sovereign wealth fund will be fully operational by the end of 2023. The MIF is designed to catalyze economic development and accelerate the country’s growth by optimizing the use of government financial assets.
gepubliceerd : 2 jaar geleden door GMA Integrated News, TED CORDERO in Finance
The Department of Finance (DOF) is in close coordination with the Office of the President (OP) to tweak the implementing rules and regulations (IRR) of the Maharlika Investment Fund (MIF) Act, which has been suspended pending further review, Finance Secretary Benjamin Diokno said.
In a news release, Diokno, who is in Riyadh to pitch the MIF to Saudi business leaders, said “the DOF is currently working closely with the Office of the President in further improving the MIF’s implementing rules and regulations.”
This came after the issuance of a memorandum, signed by Executive Secretary Lucas Bersamin by authority of President Ferdinand Marcos Jr., directing the Bureau of the Treasury, Land Bank of the Philippines, and Development Bank of the Philippines to suspend the implementation of the IRR of Republic Act No. 11954 or the MIF Act, “pending further study.”
On Thursday, Marcos clarified that the MIF was not put on hold and that the government is still working to have it operational within the year.
"We are, the organization of the Maharlika Fund proceeds apace, and what I have done though, is that we have found more improvements we can make, specifically to the organizational structure of the Maharlika Fund," the President said in speech before leaving for Riyadh to participate in the 2023 ASEAN-Gulf Cooperation Council Summit.
Budget Secretary Amenah Pangandaman, likewise, said that the review of the MIF’s IRR will be finished soon as the President made a commitment to make the sovereign wealth fund operational by the end of 2023.
Diokno, the chief architect of the MIF, has repeatedly said the sovereign wealth fund will be fully operational by the end of 2023 —meaning that the Maharlika Investment Corp. (MIC) Board has already conducted its first meeting to plan its investment activities.
The Finance chief had also said that the MIC is expected to begin its investment activities in the first quarter of 2024 after it secured an initial capital from Landbank, DBP, and Bangko Sentral ng Pilipinas.
“The MIF stands as a cornerstone for financing the infrastructure projects of President Ferdinand Marcos Jr.’s administration, which are crucial to achieving sustained and inclusive economic growth. We are steadfast in our commitment to seeing the Fund off and running before the end of 2023,” Diokno said.
“Right at the beginning of President Ferdinand Marcos, Jr.’s administration, the Philippine government set its sights on establishing institutions for long-term investments with a singular vision – a better quality of life for generations of Filipinos to come,” he said.
The Finance chief said the MIF is in line with the administration’s Eight-Point Socioeconomic Agenda for poverty reduction and Philippine Development Plan (PDP) 2023 to 2028 for deep economic and social transformation.
Diokno said the MIF was designed to catalyze economic development and accelerate the country’s growth by optimizing the use of government financial assets and promoting their intergenerational management.
“To achieve this, Maharlika aims to attract capital from both domestic and global equity investors, including large funds here in the Middle East seeking to diversify its portfolio in fast-growing emerging markets like the Philippines,” Diokno said.
The chief economic manager of the Marcos administration said investments in the MIF will be used to fast-track the implementation of some of the Philippines’ 197 high-impact infrastructure flagship projects (IFPs) worth around $153 billion.
“The Fund also presents exciting opportunities for green and blue investments, ESG-linked fixed-income instruments, and cutting-edge technologies with the advent of artificial intelligence and cloud computing,” Diokno said.
The Finance Secretary also expressed optimism on working with other sovereign wealth funds to partner with and learn best practices from.
Maharlika Investment Corp. (MIC), which has an authorized capital stock of around P500 billion, would manage the fund.
It has a seed capital of P125 billion, sourced from Landbank, DBP, and the national government.
The rest of the MIC’s shares would be available for subscription of the national government, as well as reputable private financial institutions and corporations.
Diokno said private and state-owned financial institutions can make direct investments in the MIF’s sub-funds which offer specific investment strategies.
The Finance chief also assured investors of the MIF’s safeguards which were founded on the Santiago Principles that promote transparency, good governance, accountability, and prudent investment practices.
Other mandatory safeguards include an internal and external auditor, a Joint Congressional Oversight Committee, and the examination of the Commission on Audit (COA).
“We look forward to your partnership and investment as we proceed with the full operationalization of the Fund by the end of 2023,” Diokno said.
Apart from the MIF, Diokno urged investors to tap into the diverse investment opportunities in the Philippines’ Islamic finance sector, saying it would drive economic growth and prosperity for all Filipinos.
The Finance chief said the Bangko Sentral ng Pilipinas (BSP) has adopted a single regulatory framework for both Islamic and conventional banks, enabling them to thrive on a level playing field.
“This is evident in its regulations on licensing of Islamic banks and banking units, liberalized modes of entry for foreign banks, and relaxation of minimum capitalization requirements for Islamic banking units. Prudential incentives are also offered to encourage the entry of new players,” Diokno said.
The Bureau of Internal Revenue (BIR) and Insurance Commission (IC) have also made efforts to support the development of Islamic finance by issuing policies on tax neutrality and takaful (Islamic insurance).
There are 217 unbanked cities and municipalities located in Mindanao as of March 31. This presents an opportunity for investors to tap into the Muslim market while closing the financial inclusion gap.
Islamic banking in the country operates under the guidance of the Shari’ah Supervisory Board (SSB) which issues Shari’ah opinions on Islamic banking transactions and Shari’ah products, as well as financial institutions and other stakeholders as requested by the BSP.—AOL, GMA Integrated News
Onderwerpen: Economy