Maharlika mud bath

If there is any better time to heed that sage advice — haste makes waste — it would be now, in the case of House Bill 6398, establishing the Maharlika Investments Fund.

Filed by Speaker Martin Romualdez, Ilocos Norte Rep. Sandro Marcos, and four other lawmakers, the "wealth fund bill" immediately met a barrage of comments, both pro and con, even when the whole concept of a "sovereign wealth fund, or SWF," remained unclear to most.

Perhaps a hint of politics did, indeed, seep into the picture. The fact that the bill is said to have been endorsed by President Ferdinand Marcos Jr. and authored by his family members raised red flags in the eyes of the opposition.

Still, something as significant as that deserves a depth of study and fair analysis — after all, the bill purports to lift the country up from an economic stupor.

Among the first to back up the proposal was the country's biggest private sector association. Yet just days later, the Philippine Chamber of Commerce and Industry, Inc. adopted a more cautious stance, along with other business groups including the Financial Executives Institute of the Philippines, the Makati Business Club, and the Management Association of The Philippines.

The SWF must be "reconsidered," they said.

Of concern for PCCI president George Barcelon is the seed fund amount, as well as the timing of SWF's creation, if ever.

Where will the capital be sourced, and how big shall this amount be? Can the country afford to risk such an amount given the conditions of our time?

Initially, the idea of allocating funds from government financial institutions such as the Government Service Insurance System and the Social Security System drew flak because of fears that the high-risk investments to be made under the proposed Maharlika Fund may affect the "sustainability of the country's welfare system and financial standing among international creditors," a report said.

The issue is now moot as the involvement of GSIS and SSS has been thrown into the bin.

Was the decision too hasty? According to business analysts, the suggested investible fund from the GSIS and SSS would only have made up 13 and seven percent, respectively of its total investible funds — a small portion that could be what one may call "allowable risk."

For the record, GSIS has nearly P900 billion in investible funds this year — not even its total assets. A Maharlika Fund allocation would have only been P125 billion.

Meanwhile, the question of timing is valid. Global trends indicate a slowdown in economies in 2023. However, a more upbeat outlook for the ASEAN market, including the Philippines, is seen.

The country is still expected to rise between 6 and 7 percent by 2023. Vietnam is also expected to perform well, like Indonesia. A smart move would be to tap the ASEAN for investment opportunities.

Meantime, all aspects of the debate should be studied well. This is a risk that could pay off big time if our leaders would strive to avoid smudges of bias and self-interest.