- Spearheaded by a man of integrity, initiative
- Infra-driven projects to bring in global investors, spur growth – MIC chief
A seasoned C-level executive known for his business acumen, Rafael D. Consing Jr holds another premium distinction of being the first ever CEO and president of Maharlika Investment Corporation (MIC).
Soon after his appointment to that post by President Marcos Jr. last month, Consing “hit the ground running,” driven by a strong commitment to serve the people, flag and country.
“I was eager to leverage my expertise in finance and investment promotion, honed by over three decades in the private and public sectors, to contribute meaningfully to the MIC’s success and, ultimately, the nation’s prosperity,” he said during an interview following his presidential appointment.
Having accustomed to the ways of conglomerates like the global port operator ICTSI, Consing has his job aptly cut out for him, with a veteran legislator-economist describing the CEO as “a perfect fit” for MIC.
Before he joined the government as executive director of the Office of the Presidential Adviser for Investments and Economic Affairs in January, Consing was chief financial officer of International Container Terminal Services Inc. During his stint at ICTSI, he was named Asia’s Best CFO (Investor Relations) for seven straight years.
Operating Principles
Since MIC still is in its nascent and formative phase, Consing deems it wise to firstlay down the operating principles that will be followed in organizing the state-run corporation.
Consing said that the MIC will be managed by “a world-class professional team whose members will be hired on the basis of the three I’s: integrity, intelligence and initiative — in that order.” This requires the MIC to recruit and retain highly qualified and experienced professionals who are committed to ethical and transparent business practices.
“We will make sure that all decisions and actions the MIC will take are publicly known and easy to understand, making the corporation accountable to the public,” he said. “MIC will disclose all relevant information about its activities in an annual report to be posted in its website,” he emphasized.
National Development Fund
An investment banker during the early years of his notable career, Consing clarified that a more accurate classification of the fund would be that of a national development fund.” This means that, unlike a typically defined sovereign wealth, a national development fund aims to achieve the “double bottom line” objectives of generating financial returns and achieving policy goals for the country’s socioeconomic development.
As a national development fund, MIF’s investments will be domestically- and long-term focused, strategic and targeted in scope, and collaborative in nature. Once it has generated surplus money, the fund can widen its investment breadth to include strategic projects beyond the country’s borders.
Guiding factors: ESG
Taking on the common complaint from investors about unsteady government policies, Consing pointed out that the MIC’s investment committee will establish a process through which all investment decisions will be made, regardless of industry, type of investment and classification of companies.
Consing believes in using the factors of environment, social and corporate governance (ESG) to guide an organization’s development efforts.
“It will incorporate environmental responsibility, social responsibility and strong corporate governance practices into the corporation’s investment decisions. This approach will ensure sustainability, social well-being and ethical business conduct,” he added.
Tourism infra as driving force
Consing pointed out that the MIC will promote sustainable growth, as well as spur economic and social development anchored on four key investment areas: Tourism Infrastructure, Agroforestry-Industrial Urbanism, Energy Security, and Digital Infrastructure.
With tourism as the driving force, his choice of MIC’s priority investment areas shows the depth of Consing’s understanding of how investors think in relation to the Philippines’ development needs.
Under his tourism infrastructure plan, he is incentivizing the expansion and modernization of regional airports, the upgrading of passenger seaports and the construction of new ones in strategic areas by offering investors the possibility of immediate returns from a rejuvenated tourism market, which already generated US$3.68 billion for the country in 2022.
The plan fosters public-private sector partnerships and promotes investments in “green” infrastructure, such as renewable energy systems and eco-friendly transportation options to reduce the environmental impact of tourism.
‘Agroforestry Industrial Urbanism’
To fully transform the country’s urban and agriculture landscape, the MIC will utilize a groundbreaking approach which Consing refers to as “Agroforestry Industrial Urbanism.” This innovative concept envisions the strategic combination of investments in agroforestry-industrial mega ecozones and township clusters,” he explained.
This concept of agri-industrial clusters, he said, will serve as the cornerstone of the Maharlika Fund’s agricultural strategy. It will bring together farmers, processors and other stakeholders along the value chain.
“To complement these agri-industrial clusters, industrial mega ecozones will be developed,” he continued. These ecozones will be equipped with world-class infrastructure — utilities, transportation networks, and telecommunications facilities — all powered by clean energy, he said.
MIC will lay the groundwork for these agri-industrial clusters and mega ecozones, and will thus create an environment that will attract foreign direct investments (FDIs) and domestic capital which will strengthen the agriculture sector that will, in turn, secure the country’s food supply.
It will also enable restorative forestry to improve air quality, mitigate climate change and enhance biodiversity. Further, carbon credits can be generated and monetized to raise additional capital. It will likewise prompt the creation of mega ecozones that will create more jobs, boost exports, and enhance technology transfer.
Advancing energy security
“The MIC can also play a crucial role in advancing and sustainintg energy security for a resilient Philippines,” Consing said – as MIC will invest in renewable energy, systems that promote energy efficiency, generation, distribution, storage, and district cooling as well as support grid modernization.
“This way, the MIC can help the country reduce its reliance on imported fossil fuels, reduce the effects of climate change, and create a more equitable and sustainable energy future for all Filipinos,” he added.
Bridging the digital divide
Consing also aims to empower rural communities by creating a world-class digital infrastructure and exploring other forms of digital communications technology. “We will give farmers access to digital tools and platforms, such as e-commerce and agricultural information systems, that will allow them to connect with markets, access real-time market prices, and enhance their productivity and profitability,” he explained.
“By connecting rural schools to a modern digital infrastructure and the resources it offers, we will provide students in the provinces, including those living in the remotest barrios, access to online learning platforms, educational software and connectivity, and thus bridge the gap between urban and rural education,” he said.
Supporting PPP projects
Consing also disclosed that “MIC will explore investments in other FDI- and domestic private sector-led initiatives, including other private-public partnership (PPP) projects that do not fall under the previous investment areas.” These are the projects that have been determined as capable of generating potentially strong financial returns, deemed socially impactful, or which aim to meet the socioeconomic development goals of the government.
In this area, he is taking a cue from the National Economic and Development Authority (NEDA) list of public health-related projects approved for PPP such as the University of the Philippines-Philippine General Hospital (UP-PGH) Cancer Center Project and the UP PGH expansion project.
Along with public health, education is another area to which the MIC will attract investor interest, Consing noted. “This means we will involve multinational capitalists to make their investible funds available to building schools and climate change-resilient facilities,” he said.
Public schools, particularly those in the rural areas, serve two objectives: Apart from being educational facilities, they also serve as shelters for rural people impacted by adverse climate phenomena, he said.
Optimal return: Achievable
Consing directly addressed the criticisms made by some economists regarding the P75 billion seed money the Development Bank of the Philippines and Land Bank of the Philippines infused into the MIC. He pointed out that MIC has the ability to raise the remainder of what it needs by itself.
He revealed, “One of my material contributions to the Revised IRR (implementing rules and regulations) may seem to be innocuous, especially for non-finance experts.” The Revised IRR now provides MIC greater flexibility to raise funding at different levels of its capital structure through the global capital and private markets, Consing added.
“We will raise the bulk of our envisioned capital from foreign and local investors as needed,” he said. “I’ve done this successfully before in the companies where I’ve worked for.”
A family legacy
Living an ethical life and keeping true to one’s duties have long been an honored tradition in the Consing family. In one defining moment, Consing recalled that his grandfather, Horacio Consing, served as a spy for the US military during World War II at great peril to his life; when he was finally captured, he chose to die rather than talk.
“He was able to turn into asset an officer who was working in the Japanese High Command and from whom he got valuable information that he passed on to the Americans via a guerilla network,” Consing recounted. “Unfortunately, he was captured and, when he refused to pledge allegiance to Japan, he was executed.”
The heroism of Consing’s grandfather is chronicled in the book, “Under the Red Sun, A Letter from Manila” that was authored by Jesuit priest, Fr. Forbes Monaghan. The book has since gone out of print but Consing managed to acquire two copies of the hardbound book that was published by The Delan X. McMullen Co. in 1946.
Consing is also the great grandson of educator and founder of the University of the East and the co-founder of Far Eastern University, Francisco T. Dalupan Sr.
To keep his reputation unstained and preserve his family’s honor were the twin reasons Consing quickly made himself available to media to clear his and his family’s name when newspaper reports, alleging cases of estafa, cropped up following his appointment as MIC president-CEO.
The reports, presumably orchestrated by unseen hands, resurfaced two cases that were filed in 2000 against Consing and his mother relating to the sale of a property in Cavite. For this sale transaction, Consing simply acted as an attorney-in-fact for his mother, and, as such, should not have been included in the cases in the first place. In 2006 and in 2016, both the Imus and Makati courts, respectively, which heard the cases acquitted him, with the latter also absolving him of civil liabilities.
With the resolution of these cases, Consing’s integrity and his willingness to fight for the truth no matter how daunting the hurdles may have been affirmed.
Informed sectors who know Consing say that these qualities fortify Consing’s innate capacity to fulfill his mandate as MIC chief executive, and the Fund would be in highly competent, nurturing hands for the greater good. ***