NextGen Day

When he presented the Philippines’ proposed sovereign wealth fund (SWF) at the World Economic Forum (WEF), President Ferdinand R. Marcos Jr. gained support from attendees, Malacaang announced on Wednesday.

Communications Secretary Cheloy Garafil said in a statement that Marcos got an encouraging response during a soft launch of the envisioned SWF, also known as the Maharlika Investment Fund (MIF).

Marcos stated that the MIF’s establishment process is already underway during the Philippines’ Country Strategy Dialogue at the WEF in Davos, Switzerland.

He stated in his introductory remarks that “the process of establishing our first-ever sovereign wealth fund is begun.”

“Such a fund is one tool among many in our efforts to diversify our financial portfolio, which includes our existing institutions pursuing investments that will generate stable returns, but also welfare effects spanning employment creation, public service improvement, and a reduction in the cost of economic activity,” Marcos continued.

According to House Bill 6608 (HB 6608) or the proposed MIF Act, an independent fund that upholds the values of good governance, transparency, and accountability will be financed by contributions from the federal government, investible funds of a select group of government financial institutions (GFIs), declared dividends from the Bangko Sentral ng Pilipinas, and other sources.

According to the proposed measure, the fund will be used to make strategic and commercial investments with the goal of promoting fiscal stability for economic development and strengthening the best-performing GFIs through new investment platforms that will aid in achieving the priority plans of the national government.

On December 15, 2022, HB 6608 was adopted by the House of Representatives during its third and final reading. The Senate received it on December 19, 2022.

Many WEF participants have shown interest in the Philippines and its proposed MIF, according to Senator Mark Villar, who is a member of the official Philippine mission in Switzerland.

According to Villar, the proposal to establish a sovereign wealth fund would benefit the nation in increasing revenue and strengthening its financial situation.

Villar stated in a Davos interview that “through the wealth fund, magkakaroon ng additional income and fiscally mag-i-improve ‘yung fiscal status ng ating bansa” (our country will have an additional income and our fiscal situation will improve).

‘Performs well,’ PH

In the meantime, Garafil noted in a different statement, Marcos also received commendation from the IMF for his administration’s measures and attempts to maintain the Philippines’ economic growth.

This follows a Tuesday side discussion between Marcos and IMF managing director Kristaline Georgieva at the WEF (Zurich time).

Under his direction, the Philippines, according to Georgiva, became a “exceptionally well-performing country.”

As reported by the Presidential Communications Office (PCO), Georgieva told Marcos, “What you have done in the last year of turmoil to sustain progress… is highly respectable.”

Georgieva further stated that the IMF was prepared to assist its members, including the Philippines, in attaining sustainable growth and in promoting economic measures that would benefit more Filipinos.

“We have been really interested in getting to know our members better and understanding the conventional issues… After Marcos emphasized the need for the Philippines to “get back to the basics” in light of the current issues facing the country, she responded, “They are still there.

During the conference, Marcos acknowledged that the nation’s various systems, including the food supply, energy, infrastructure, and climate change, have “weaknesses.”

The International Monetary Fund (IMF) is a special institution of the UN that promotes international trade facilitation, financial stability, and monetary cooperation.

On December 27, 1945, the Philippines joined the IMF.

The 2022 full-year gross domestic product (GDP) growth that the Marcos administration anticipates will likely be significantly higher than its 6.5 to 7.5 percent growth forecast.

According to Marcos, who spoke at the Country Strategy Dialogue, the government expects the economy to increase by about 7% in 2022.

Consistency

Former British Prime Minister Tony Blair emphasized the value of “consistency” in business during a separate discussion with Marcos.

“No matter which direction you choose to take, there should be some level of consistency and stability. Therefore, from a political standpoint, I believe it is crucial, said Tony Blair, who is also the executive chairman of the Tony Blair Institute for Global Change, during his meeting with Marcos.

The statement was made by Blair, who stated that the Philippines’ standing in the previous year was “not quite good.”

“So it would be great to have someone explain very clearly where and what the country is doing. In reference to Marcos, Blair stated, “I believe it sends a good signal.

In answer, Marcos agreed that potential investors should be aware of the rules established by every nation where they would consider making an investment.

This is Marcos’ third in-person encounter with Blair. In September 2022, they initially got together in New York City for the UN General Assembly. Manila hosted the location of their second meeting in October 2022.

Blair and Marcos discussed the country’s development strategy at their most recent meeting, according to Garafil.

In addition, she claimed, “President Marcos and Blair addressed the country’s development plan, which the President said will be for both economic and social upliftment of the country.

“This is to lessen the misery that the pandemic has caused the populace, as well as to help the nation get ready for the opening of the world economy. Digitalization, logistics, infrastructure development, energy, tourism, and food security are the main areas of the Philippines’ development plan, according to Garafil.

Some of the top chief executive officers and investment specialists in the globe attending WEF gave Marcos’ investment pitch for the Philippines “a very favorable reception.”

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