‘Opportunity for prosperity’
With or without the MWF, however, SSS and GSIS use portions of their money to invest in projects to keep their resources growing which benefits their members.
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Daily TribuneWith or without the MWF, however, SSS and GSIS use portions of their money to invest in projects to keep their resources growing which benefits their members.
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President Ferdinand "Bongbong" Marcos Jr.'s economic team issued a powerful statement supporting the creation of the Maharlika Wealth Fund embodied in a bill that is moving forward at the House of Representatives.
The joint statement of the Departments of Finance and Budget and Management, the National Economic and Development Authority, and the Bangko Sentral ng Pilipinas emphasized the urgency of enacting the measure as "this will redound to growth and help the country achieve economic transformation towards inclusivity and sustainability".
"Let us not deprive our people of this opportunity for prosperity," the statement read.
Despite the flak from vicious critics, the MWF House bill continues to evolve with the recent changes removing the pension sources of the seed capital and the Department of Finance secretary now heading the firm that will be formed to administer the money pool.
The authors of the unnumbered bill include Speaker Martin Romualdez and Deputy Speaker Sandro Marcos.
Presidential chief legal counsel Juan Ponce Enrile said the finance chief as head of the proposed MWF makes it more acceptable.
The removal of the Government Service Insurance System and the Social Security System as contributors greatly diminished the size of the MWF.
Those representing themselves as members of the two institutions but have partisan interests made a loud noise about making Congress off limits to the use of pension contributions.
With or without the MWF, however, SSS and GSIS use portions of their money to invest in projects to keep their resources growing which benefits their members.
The MWF would have made such investments more efficient.
The amount of money in the pool determines the strength of the wealth fund in entering big-ticket projects globally since these are investments that promise high returns.
Proceeds from the MWF projects, in turn, can be used to fund infrastructure, high-return energy programs, and countryside development.
The key goal of the MWF is to become an investment vehicle from the expected mining boom from which it will draw funds.
Experts said MWF can also integrate the Malampaya Fund since for now, the key financial resource can only be used for energy projects.
Drawing from the experience of the past misuse of the natural gas royalty, the bill proposes multiple layers of governance safeguards.
The backing of the economic experts offers an assurance to the nation that the MWF is not what is being painted by detractors as a magnet for corruption.
The managers who are mostly economists with a combined 70 years of professional experience believe the MWF will be key in achieving the medium-term targets under the Philippine Development Plan 2023 – 2028.
A sovereign wealth fund will enhance fiscal space and reduce pressures as the fund pursues public infrastructure projects, as well as reduce uncertainties in government investments amid high inflation and the lingering pandemic effects.
The economic experts see the MWF, as an option in which instead of adding to the already huge debt, the nation can generate its capital to engage in more projects.
