Metro Manila (CNN Philippines, December 6) —The World Bank said it will be ready to share its best practices and designs of a sovereign wealth fund, should the Marcos government seek advice on establishing one.
The Washington-based lender was responding to a query from journalists on the institution’s view on the government’s plan to create a ₱250-billion wealth fund seeded by state-run banks and pension funds against a backdrop of a wider budget deficit and record debt.
“The World Bank has a lot of expertise in sovereign wealth funds both of the kinds that have a big meta-resource base that they can use to invest but also sovereign investment funds that basically try to track all investments in the country, to channel investments into the country,” Ralph van Doorn, World Bank Senior Economist, said.
The World Bank’s lead economist in Manila said they have yet to see the nuts and bolts of the proposed legislation, but added that the organization has the arsenal of knowledge in that investment space.
“We haven’t seen the shape of the law… but the moment the government is asking for advice on best practices and design of sovereign wealth funds, we will be more than happy to give such advice,” he said.
Some senators recently warned that there is still a need to further study and answer questions regarding the proposed Maharlika Wealth Fund.
The measure was also met with protest from groups who voiced concerns that the fund will put the people’s money at risk.
The sovereign wealth fund’s initial investment of ₱250 billion will come from the GSIS (₱125 billion), SSS (₱50 billion), Land Bank of the Philippines (₱50 billion), and Development Bank of the Philippines (₱25 billion).
With taxpayers’ money to be exposed to financial risks, the House Ways and Means Committee chairman earlier proposed additional safeguards to be in place in the creation of the proposed Philippine sovereign wealth fund.
The Congress’ lower chamber eyes passage of the bill by Dec. 12.
