February 3, 2023

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Economic team pushes for approval of Maharlika Wealth Fund

2 min read

Economic managers said they “strongly support” the creation of the Maharlika Wealth Fund (MWF), after lawmakers agreed to remove a provision in the bill that would have sourced its funding from state-run pension funds.“We, the economic managers of the Marcos Jr. administration, strongly support the creation of the Maharlika Wealth Fund as a vehicle to move forward the Agenda for Prosperity and achieve the economic goals of the administration,” economic managers said in a statement.The statement was signed by Finance Secretary Benjamin E. Diokno, Budget Secretary Amenah F. Pangandaman, Socioeconomic Planning Secretary Arsenio M. Balisacan and Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla.In a press briefing on Friday, Mr. Diokno called for the immediate enactment of the bill creating the MWF.“The establishment of a Sovereign Wealth Fund is a tried and tested investment vehicle that has been used by governments in both first world and developing countries to achieve their economic objectives,” he said.Instead of using pension funds, the Finance chief said the proposed measure is being revised by lawmakers to require the BSP to contribute 100% of its annual dividends into the sovereign wealth fund for the first two years.“On the succeeding fiscal years, the central bank shall remit 50% of its declared dividend to the fund and remaining 50% to the National Government (NG). The funding increased capitalization of the BSP so we will transfer 50% to the NG and it will go back to BSP. Thereafter, the BSP shall remit 100% of its declared dividend to the funds,” Mr. Diokno said.In 2019, the BSP recorded a net income of P46.1 billion, declaring dividends of P23.05 billion. Its net income stood at P31.79 billion in 2020 with its declared dividend at around P15.89 billion. Last year, the BSP recorded a net income of P34.81 billion, while its dividends amounted to P17.41 billion. “The investible funds will be channeled through diversified…

Sam Marcelo

2022-12-09 04:34:01

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