The Philippines has passed a law creating a sovereign wealth fund, which is expected to help the country save for future generations and invest in infrastructure and other long-term projects.
The law, which was passed by the Senate and House of Representatives on Monday, establishes the Maharlika Investment Fund (MIF). The MIF will be seeded with ₱9.2 billion, which will be sourced from the government’s budget.
The fund will be managed by a board of directors, which will be composed of the finance secretary, the budget secretary, and the governor of the central bank. The board will be responsible for investing the fund’s assets in a diversified portfolio of assets, including foreign currency, equities, and bonds.
The MIF is expected to generate income that will be used to finance government projects, such as infrastructure development and social programs. The fund is also expected to help the Philippines save for future generations by providing a buffer against economic shocks.
The passage of the law is a significant development for the Philippines. It is the first time that the country has established a sovereign wealth fund. The MIF is expected to play a major role in the country’s economic development in the years to come.
Here are some of the key takeaways from the law:
- The Maharlika Investment Fund (MIF) will be seeded with ₱9.2 billion.
- The MIF will be managed by a board of directors.
- The MIF will be invested in a diversified portfolio of assets.
- The MIF is expected to generate income that will be used to finance government projects.
- The MIF is expected to help the Philippines save for future generations.
The passage of the law is a significant development for the Philippines. It is the first time that the country has established a sovereign wealth fund. The MIF is expected to play a major role in the country’s economic development in the years to come.thumb_upthumb_downtuneshareGoogle it
Photo by Yannes Kiefer on Unsplash
