The Maharlika Investment Corp. or MIC is working to establish efficient governance and transparency of the Maharlika Investment Fund, the country’s first sovereign fund, as it prepares for its membership in the International Forum of Sovereign Wealth Funds.

In a statement released by the Department of Finance or DoF on Friday, Finance Secretary and MIC chairman Ralph Recto said the MIC Board approved the plan for IFSWF membership on 29 February.

The DoF said the membership will allow the MIC to accurately comply with the Santiago Principles which is a set of guidelines that reduces economic and financial risks to sovereign wealth funds, stabilize flow of capital and impose sound measures for accountability in case of huge losses in the fund.

3-year membership

The Santiago principles consist of 24 practices the MIC must follow in compliance with the Republic Act 11954 or Maharlika Investment Fund Act of 2023.

As a new IFSWF member, the DoF said the Philippines will be granted a three-year membership.

Maharlika Investment Fund has an initial capital of P75 billion contributed by the Land Bank of the Philippines and the Development Bank of the Philippines.

The law also requires Bangko Sentral ng Pilipinas to share its dividends into the sovereign wealth fund, along with the income from select properties of the Philippine Amusement and Gaming Corporation.

The MIC has an authorized capital stock of P500 billion.

MIC president and chief executive officer Rafael Consing Jr. said the MIC aims to first improve the energy sector through infrastructure in renewable energy, followed by transportation infrastructure and agriculture sectors.