The Maharlika Investment Fund (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 Department of Finance (DOF) said.
“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 said in a fact sheet released to reporters during its weekly press chat on Friday.
The department said contribution to growth was included in the National Economic and Development Authority (NEDA) paper earlier submitted to the Senate.
“When the full P125 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,” it said.
The DOF noted that the MIF is also projected to produce 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,” it added.
In contrast, NEDA also projected returns in a scenario where there is no MIF, and the PHP125 billion used for the initial capitalization remains with the founding government financial institutions and the national government.
In another scenario where, in addition to co-investments generated with other parties, the P500 billion authorized capital stock of the corporation can be fully paid over the first 10 years of operation, the NEDA estimated that the MIF could generate a 0.22-percentage point contribution to Philippine growth annually.
The creation of jobs, both direct and indirect, is projected at 350,000 while the spillover effects in this scenario are projected to contribute 0.05 percentage points annually to growth over the next 11-20 years.
Department of Finance (DOF) Secretary Benjamin Diokno meanwhile said the president and chief executive officer of the Maharlika Investment Corporation (MIC), the governing body of the MIF, should be a Filipino citizen.
Diokno made the clarifications after the Bureau of Treasury (BTr) earlier announced that it is now accepting applications and nominees for senior members of the MIC management.
Diokno further said the nationality requirement is not specified in the implementing rules and regulations of the MIF law. However, the nationality requirement is mandated under the rules of the Government Commission for Government-owned or Controlled Corporations (GCG).
The MIC needs a president and CEO, two regular directors, and three independent directors, the MIC guidelines said.
Diokno further said the head of the MIC should be a Filipino, as well as the directors. Independent directors can be non-Filipinos, Diokno said,
National Treasurer Rosalia De Leon, who was also present during the briefing, said the BTr have yet to receive any applications since the job opening was posted.
De Leon said the applicants would first go through an ad hoc technical committee, composed of representatives from different government agencies.
Once the Board of Directors is complete, Diokno, who will sit as ex officio chairman, said their first order of business will be organizational matters. He earlier said that the MIF would be operational before the end of 2023.