Metro Manila (CNN Philippines, January 22) — Senate President Juan Miguel Zubiri confirmed that Sen. Mark Villar filed the Maharlika Investment Fund (MIF) bill last week.
“I hope that he calls in the soonest possible time, magtawag na po siya ng committee hearing para mapag-diskusyon na po natin ito ng mga miyembro ng Senado,” Zubiri said in a radio interview on Saturday.
[Translation: I hope that he calls in the soonest possible time a committee hearing so members of the Senate can begin discussing.]
Zubiri added that Villar, who heads the Senate Committee on Banks and Financial Institutions, was qualified to file the MIF as he accompanied President Ferdinand Marcos Jr. on foreign trips where the issue was discussed.
“Kasama nya naman si Presidente kapag umiikot sa abroad, sa mga presidential trips and visits, at pinag-uusapan nila ‘yung Maharlika fund so I think he is well adapt and well-versed on the needs of the Maharlika fund at gusto na po namin siya tanungin kung ano ba ang plano niya dito sa wealth fund na ito,” Zubiri said.
[Translation: He was with the president when he is abroad on presidential trips and visits where they talk about the Maharlika fund so I think he is well adapt and well-versed on the needs of the Maharlika fund and we want to ask him what his plans for this wealth fund are.]
The government will use the MIF to invest in key sectors like foreign currencies, domestic and foreign corporate bonds, commercial real estate, and infrastructure projects to help fund the country’s priority programs.
READ: The proposed Maharlika Investment Fund: What you need to know
Zubiri said he has not yet read a copy of the bill filed by Villar, but he was informed it was same as the one passed by the House of Representatives last December.
Marcos brought up the MIF during the World Economic Forum (WEF) in Davos, Switzerland, saying it was part of the administration’s efforts to further diversify the country’s financial portfolio. Marcos said the MIF’s creation was “underway.”
Before he left for Manila, Marcos said the MIF bill was being tailored to suit the needs of the country.
This was after Albay Rep. Joey Salceda also revealed there will be a new, “re-engineered” version of the bill, which will drop the dividends from the Bangko Sentral ng Pilipinas as capital source.
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Salceda also said they eye to raise money for the MIF through an initial public offering (IPO).
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No copy of the revised bill has been made available as of publishing.
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For fellow Albay Rep. Edcel Lagman, the modifications show the MIF is an “ill-prepared economic measure” which was “fast-tracked” at the House of Representatives.
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He also questioned the revisions, as the bill already hurdled the lower chamber last month.
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“Since the so-called ‘re-engineering’ of the [fund] was not deliberated in the House of Representatives, the approval of the bill must be recalled so that the House can further deliberate on the belated innovations,” Lagman said.
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The lawmaker further stressed that a sovereign wealth fund “must be essentially controlled by the government” and not eventually by the private sector through an IPO.
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In the Senate, the proposed sovereign fund has also been met with opposition. For one, Sen. Koko Pimentel said its “soft launch” at the WEF was premature and a means to hurry up its enactment.
House Speaker Martin Romualdez, meanwhile, came to the defense of the fund, saying there was “no time to waste” when it comes to the MIF.
“With all due respect, it’s already been filed in the Senate. For all those Senators who have contrary thoughts just read the bill and deliberate it from the Senate. Let’s take it from there,” he said.
In the radio interview, Zubiri said the most realistic timeline for the Senate to decide on the MIF would be close to the middle of the year.
“I think by committee level matatapos na po natin iyan by then because we only have about two months before the Holy Week adjournment, end of March, so mayroon po tayong panahon para sa committee level and of course committee report para isponsor sa plenaryo,” he said. “Maybe a few debates on the floor, realistically, sa tingin ko baka, baka first week or second week of May pag-uwi po natin galing sa Holy Week break. Iyan po ang ating realistic scenario.”
[Translation: I think by committee level we will finish it by then because we only have about two months before the Holy Week adjournment, end of March, so we have time for the committee level and of course committee report for sponsorship at the plenary. Maybe a few debates on the floor, realistically, I believe around the first week or second week of May when we return from the Holy Week break, that is the most realistic scenario.]
