Hopefully, during the Christmas break, our national legislators will find the space to address stalking questions about the Maharlika Investment Fund, which has been refined by the House of Representatives before it adjourned its sessions.
Many have put on the brakes, even after the House of Representatives had rushed to complete its version and before the Senate convenes next month to tackle the issues from both sides.
President Ferdinand Marcos Jr. has raised the bill as another priority bill, among more than a dozen so certified, with the appearingly valid fear that the MIF would be passed before long but not thoroughly discussed and therefore harebrained.
The rider here is the MIF would go at full speed, given the President’s admission that the MIF was all along his idea, if there were no valid substitutes that had been there prior to crafting of the bill.
Some have raised the thought that the government should continue with the tried and tested public-private partnership scheme although proponents admit there are limitations for this option.
There have also been suggestions in some sectors to widen the tax base, which would run parallel to efforts to improve and make more efficient tax collection by the government.
Now here comes the Philippine Stock Exchange, operator of the country’s stock market, throwing its support to the MIF, underlining its persuasion this would deepen the capital markets.
PSE President Ramon Monzon has said the proposed MIF could create a “multiplier effect,” attract more investments, and result in growth in the country’s capital markets.
The MIF issue has become controversial due to the initial inclusion of the pension funds Social Security System and the Government Service Insurance System as funding sources.
But the proposal has since been revised to appease the concerns of the public as well as financial experts.
The MIF will draw funds from the Land Bank of the Philippines, the Development Bank of the Philippines, PAGCOR and the Bangko Sentral ng Pilipinas, among others.
Proponents have said the MIF will support economic growth and support government projects.
“The PSE’s primary mission is to facilitate the flow of capital into more productive and beneficial channels and as a result contribute to efficient capital formation for the country,” Monzon said.
“Since the MIF seeks to attract and invest capital for big-ticket infrastructure projects, sustainable green and blue infrastructures and countryside developments, we believe these investments will create a multiplier effect that would attract more fund-raising activities and portfolio investments and in turn contribute to the growth and development of our capital markets,” he added.
We are inclined to listen to impassioned arguments, which put us on a higher level of serious thought that indeed there is need to clarify the MIF role and its benefits.
For instance, what can the MIF do better than the public-private partnership scheme in tax collections? Among other questions high on the minds of finance-oriented executives.
The Christmas break should provide the space.
