The Maharlika Investment Corp. (MIC) kicked off operations with a P125 billion initial capitalization and identified potential areas in which the Maharlika Investment Fund (MIF) could invest.
In its first board meeting on Jan. 3, the MIC board approved the P125 billion capitalization.
MIC President and Chief Executive Officer (PCEO) Rafael D. Consing, Jr. highlighted possible investments in infrastructure; oil, gas, and power; agroforestry industrial urbanization; mineral processing; tourism; transportation; and aerospace and aviation.
The MIF will also be used to speed up the implementation of the country’s 197 high-impact infrastructure flagship projects (IFPs) worth about P8.7 trillion.
Established under Republic Act (RA) No. 11954, the MIC serves as the sole vehicle responsible for mobilizing and using the MIF for investments in transactions aimed at generating optimal returns on investments.
The creation of the MIF, which is the Philippines’ first sovereign wealth fund, is in line with the Marcos administration’s 8-Point Socioeconomic Agenda for poverty reduction and the Philippine Development Plan (PDP) 2023-2028 for deep economic and social transformation.
The fund is designed to catalyze economic development and accelerate the country’s growth by optimizing the use of government financial assets and promoting inter-generational management.
The MIC is composed of nine members led by Finance Secretary Benjamin Diokno sitting as the chairperson in an ex-officio capacity and Consing as vice chairperson.
Other members include Land Bank of the Philippines CEO Ma. Lynette V. Ortiz, Development Bank of the Philippines (DBP) CEO Michael O. de Jesus, and MIC directors Vicky Castillo Tan, Andrew Jerome Gan, German Lichauco, and Roman Felipe Reyes.
During the meeting, the board called for nominations for chairpersons of the committees in accordance with Sections 21 and 26 of RA 11954.
Consing nominated Reyes to head the audit committee, while Tan was nominated to lead the risk management committee.
The board also approved the creation of additional committees and Consing nominated the following to serve as chairpersons: Gan for the investment committee, Lichauco II for the corporate governance and ethics as well as related party transactions committees, Tan for the nomination and remuneration committee, and Consing himself for the executive committee.
The board approved the appointment of the Bureau of the Treasury (BTr) as the interim fund manager of the MIC.
Consing also updated the board on start-up activities such as staffing and recruitment for the MIC and the hiring of its management team.
