By Junex Doronio

DESPITE CRITICISMS AND UNFOUNDED FEARS, the Maharlika Investment Fund (MIF) will actually spur the country’s economic advancement.

This was the fearless forecast of the Department of Finance (DOF) which said the MIF can generate a 0.07-percentage point economic growth annually in the first 10 years of operation and generate about 100,000 direct and indirect jobs.

The Philippines’ first-ever Sovereign Investment Fund (SB 2020 and HB 6608) was signed into law by President Ferdinand R. Marcos Jr. signed into law at the Rizal Hall, Malacañang Palace on July 18, 2023.

Meanwhile, the Bureau of the Treasury issued the law’s IRR a little over a month after President Marcos signed the MIF Act into law on July 18.

It was subsequently published in the Official Gazette and 15 days after its publication, the IRR’s effectivity begins today, Tuesday, Sept. 12, 2023,

“It is a crucial undertaking. It will support our overall goal of 6.5 to 8% gross domestic product (GDP) growth in the medium term. And through the fund, we will accelerate the implementation of the 194 NEDA Board-approved flagship infrastructure projects,” PBBM said.

“When the full PHP125 billion initial capitalization has been fully paid over the first 10 years of operations, the MIF can generate a 0.07 (percentage point) contribution to Philippine growth annually over the same period,” the DOF said in a statement.

The DOF also pointed out that the MIF will likely produce thousands of jobs.

“Due to spillover effects, the value added generated through investment activities in the first 10 years of the Fund is expected to still contribute 0.01 (percentage points) annually to growth over the next 11-20 years,” the finance department further said.

Some critics maintained that by creating the MIF, the funding for some projects could bypass the normal budget process, which could decrease Congress’ power to scrutinize them. (ai/mnm)

“A fully operational MIF, coupled with an ideal economic backdrop to attract more investors will definitely be major factors that will increase job creation in the country, consequently accelerating the Philippines’ economic growth,” the DOF maintained.