Philippine President Ferdinand Marcos Jr: ‘State pension fund won’t be used for Maharlika Fund’

2023 May 31

The government will not use the state pension fund for the newly-approved Maharlika Investment Fund (MIF), President Ferdinand R. Marcos Jr. assured on Wednesday.

The President made the remarks in an interview following his attendance at the 87th Anniversary of the Government Service Insurance System (GSIS) in Pasay City, where he was asked on his views on the possibility of using the state pension funds as funding source for the MIF.

“I perfectly agree. We have no intention of using ang pera – kukuha tayo ng pera ng pension fund. That’s not the (intention). We will not use it as a seed fund,” Marcos told reporters.

“However, a pension fund, which is what pension funds do, is they invest. If the pension fund decides the Maharlika Investment Fund is a good investment, it’s up to them if they want to invest in it,” he added.

The Maharlika Investment Fund Bill was approved by the Senate on Wednesday following more than 12 hours of deliberations. The House of Representatives approved its version in December last year. The President earlier certified the bill as urgent. It will now be subjected to a bicameral conference consideration.

The Department of Budget and Management (DBM) said that the fund’s funding sources include the Landbank of the Philippines, the Development Bank of the Philippines, privatization proceeds, the Philippine Amusement and Gaming Corp., and Bangko Sentral ng Pilipinas dividends.

The proposed MIF is an independent fund that adheres to the principles of good governance, transparency and accountability and shall be sourced from the investible funds of select government financial institutions (GFIs), from contributions of the national government, declared dividends of the BSP and other fund sources.

Under the scheme, the MIF shall be used to invest in a strategic and commercial activities in a manner designed to promote fiscal stability for economic development and strengthen the top-performing GFIs through additional investment platforms that will help attain the national government’s priority plans.