Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Marcos Jr. suspends Maharlika Investment Fund's regulations for review

EditorAmbhini Aishwarya
Published 10/18/2023, 12:50 AM

President Ferdinand Marcos Jr. has issued a directive to suspend the Implementing Rules and Regulations (IRR) of the Maharlika Investment Fund (MIF). This decision was announced on Wednesday, following a bill signing at Malacanang Palace. The memorandum was dispatched to financial institutions such as the Bureau of Treasury, Land Bank of the Philippines (LBP), and Development Bank of the Philippines (DBP), instructing them to notify all relevant government departments and corporations about this halt.

This move follows Marcos' previous decision to reduce LBP's government deposits from 50% to 0% for 2022 earnings, after LBP's PHP50 billion contribution towards MIF's capital for compliance with capital adequacy requirements. Both LBP and DBP are due to contribute PHP75 billion to Maharlika Investment Corporation's capital, with MIF projected to be fully operational by the end of 2023.

The suspension is intended to scrutinize MIF's IRR and ensure safeguards for transparency and accountability. Despite these arrangements, MIF has faced criticisms from opposition lawmakers like Rep. France Castro and economists for being rushed, flawed, and potentially misuse-prone. A Supreme Court petition was also filed in September to declare Maharlika unconstitutional.

Signed into law on July 18, 2023 after its proposal in November 2022, this fund marks a first for the Philippines. It is aimed at fostering fiscal stability through strategic investments in various sectors. Finance Secretary Benjamin Diokno will chair the fund, with LBP and DBP CEOs also taking positions.

Marcos Jr.'s decision to suspend the IRR of MIF comes ahead of his scheduled trip to Saudi Arabia where he intends to present the Maharlika Fund to the Kingdom's business community.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.