The Philippine Bureau of the Treasury announced Tuesday (August 29) the implementation of rules and regulations (IRR) for the Maharlika Investment Fund (MIF) Act which was issued on August 28 and would take effect on September 12.
According to Philippine law, any IRR would take effect 15 days after its publication in the country's Official Gazette or in a newspaper of general circulation.
"The MIF will serve as a crucial financing mechanism to widen fiscal space, ease the burden on local funds, and reduce reliance on official development assistance [ODA] in funding big-ticket projects such as those specified in the recently approved Infrastructure Flagship Project [IFP] list," Finance Secretary Benjamin Diokno said.
Philippine President Ferdinand Marcos Jr. signed the legislation last July, describing it as an "extremely important measure" and "bold step" as Manila aims to strengthen the economy in a post-pandemic world. Diokno added that same month that the drafting of the IRR was in its final stage, CNN's Philippine bureau reported.
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How Would the Fund be Created?
According to the country's Treasury, the national government should source its PHP 50 billion ($881 million) contribution from "100% of the dividends" of the Philippine Central Bank (BSP) for the first and second years upon effectivity of the law.
The fund would also take a 10% share from the income of the Philippine Amusement and Gaming Corporation (PAGCOR) for a period of 5 years; 10% of revenues from gaming operations of other government-owned gaming operators/regulators; government assets and proceeds from the privatization of government assets; and other sources, such as royalties and/or special assessments for a period of five years.
The bureau added agencies providing social security and public health insurance services are not allowed to invest in the fund, a deeply contested issue during the time it was being legislated.
PH Finance Chief: Now Hiring Maharlika Investment CEO
Meanwhile, Diokno said the government is currently looking for people to fill leadership roles for the Maharlika Investment Corporation, an entity created by the newly signed act.
"The search for the President and CEO (PCEO) of the Maharlika Investment Corporation, two regular directors, and three independent directors is on," the finance chief stated. "The qualifications of the PCEO, the regular directors, and the independent directors are provided in Section 39, 22, and 26 of the IRR, respectively."
A copy of the implementation guidelines is yet to be published for public viewing as of this report.
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