EU chamber neutral on Maharlika Fund
You cannot just compare it. It has taken years to implement that kind of system and this nation is very small so it’s much easier to control and there’s a very high degree of trust in government
There's a bit of interest but members of the European Chamber of Commerce of the Philippines on Thursday said they will remain neutral on the proposed sovereign wealth fund.
House Bill 6398 dubbed "Maharlika Wealth Fund," filed by Speaker Martin Romualdez aimed to maximize the profitability of investible government assets. It was patterned after the sovereign wealth fund of other countries.
Lars Wittig, president of the ECCP, said the Philippines may find it hard to duplicate the experience of European countries such as Norway, which owns the third biggest such fund globally, next to France, with China as the leading nation with the biggest sovereign wealth.
"You cannot just compare it. It has taken years to implement that kind of system and this nation is very small so it's much easier to control and there's a very high degree of trust in government, and you are referring to countries that are very capable, very trusted in managing other people's money," Wittig said.
No comparison
Norway's fund has over $1.19 trillion in assets covering 1.4 percent of the world's listed companies.
In December 2021, it was worth about $250,000 per Norwegian citizen.
Wittig said ECCP cannot give a definite answer whether to support the said move or not, as the bill was just a proposal.
"I think when the maturity of this country is ready, then it will also be an area to pursue further. We are monitoring it, and we are learning more, but we don't have many details yet. It's a big issue with a few details on the table. We appreciate that you are interested in it because it's a big subject and welcomes that it is getting the attention that it does. It is an important issue," Wittig explained.
On Tuesday, the House banks and financial intermediaries committee approved "in principle" Romualdez measure.
The Maharlika Wealth Fund earned support from Finance Secretary Benjamin Diokno on Wednesday, assuring that the country's with safeguards against political interests.
"We are more transparent, and there will be a governing body that is entirely separate from the government. While some cabinet members will be part of the advisory council, they will be independent," Diokno said.