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Legislative bills

House of Representatives Proposes Creation of Maharlika Wealth Fund

Strategic Insights

— 1 min read

The House of Representatives has introduced a bill to create the Maharlika Wealth Fund (MWF), a sovereign wealth fund aimed at maximizing the profitability of government investible assets. The proposed fund, modeled after the sovereign wealth funds of 49 countries, will draw resources primarily from the Government Service Insurance System (GSIS), Social Security System (SSS), Land Bank of the Philippines (Land Bank), and Development Bank of the Philippines (DBP). The fund's objective is to achieve the government's socioeconomic roadmap and investment destination goals.

Key Takeaways:

  • The proposed Maharlika Wealth Fund (MWF) will be a sovereign wealth fund modeled after the SWFs of 49 countries, including Singapore, China, Hong Kong, South Korea, Malaysia, Indonesia, Taiwan, Vietnam, and East Timor.
  • The fund will be established through contributions from the Government Service Insurance System (GSIS), Social Security System (SSS), Land Bank of the Philippines (Land Bank), and Development Bank of the Philippines (DBP) with an initial investment of P250 billion.
  • The fund's governing board will be composed of nominees from the contributing financial institutions and two independent directors.
  • The MWF will focus on the management, investment, and use of the fund's proceeds to create savings for citizens and promote economic development.
  • The fund will adhere to the Santiago Principles-24, generally accepted principles and practices for state-owned investment funds.
  • The proposed MWF is aimed at achieving the government's socioeconomic roadmap and investment destination goals, as well as providing efficient channeling of resources to investments that will provide the most value to participating financial institutions and the country.

Statistics:

  • P250 billion: The initial investment for the Maharlika Wealth Fund
  • 49: The number of countries that have sovereign wealth funds similar to the proposed MWF
  • Chile: The location of the 2008 Santiago summit where countries with sovereign wealth funds agreed to the Santiago Principles-24
  • 24: The number of generally accepted principles and practices for state-owned investment funds in the Santiago Principles-24

Sources:

  • "House proposes creation of Maharlika Wealth Fund, aims to maximize profitability of government assets"
  • "Speaker Romualdez pushes for creation of Maharlika Wealth Fund to achieve socioeconomic roadmap"
  • [Note: There is no external source provided with exact reference, so I only included direct quotation and paraphrased information from the main text]

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