Phillippine SWF Has Quick Reversal
Posted on 10/19/2023
After funds were transferred to the government for the Maharlika Investment Fund, the Fund was briefly halted, but it now appears it is back on track again. The government along with two state-run banks: Land Bank of the Philippines and Development Bank of the Philippines, are providing the fund’s seed money. Development Bank has released US$ 440 million to the government as its share in the initial capital of the nation’s sovereign wealth fund. Its capital was combined with US$ 883 million from Land Bank of the Philippines. A halt to the plans became international news, prompting a response from the Fund’s chief architect.
Philippine President Ferdinand Marcos Jr. says he isn’t ready to give up on his SWF plans, and is “finding ways to make the Maharlika Investment Fund as close to perfect and ideal as possible” before rollout. Marcos says he doesn’t want to stop the fund’s progress, but he does want to make changes. Marcos had suspended the SWF. The extent of the delay had been unclear, but he now says it will not take any longer than the end of the year. As Marcos seeks Middle East investment, he says “We are very encouraged that we are going down the right path.”