MANILA — The Marcos administration's economic managers on Tuesday said the Maharlika Investment fund would benefit the Filipino people as a "vehicle for economic growth."

In a joint statement, the Department of Finance, Department of Budget and Management, the National Economic and Development Authority, and the Bangko Sentral ng Pilipinas, insisted that the MIF will support economic growth.

The economic managers said Maharlika is aligned with the administration's Medium-Term Fiscal Framework (MTFF) and the 8-Point Socio-economic Agenda, which are meant to support sustained robust growth, fuel employment and alleviate poverty, among others.

The MIF also "operationalizes" the Philippine Development Plan 2023 -2028, which allowed the government to “diversify and explore alternative sources of financing…. New instrument formats will also be explored to reach new markets and investors," the statement said.

They also reiterated that the purpose of the fund is clear despite criticisms that there is insufficient explanation as to what the fund is and how the government is intending to use its proceeds.

"The objectives are clear: to invest funds that are available in government instrumentalities and utilize them for investment purposes on the basis of their individual mandates," the statement said.

"Envisioned to allow the government to execute and sustain high-impact and long-term economic development programs and projects without imposing new taxes, Senate Bill No. 2020 allows for profitable investment development projects while also ensuring that there is flexibility in the market activities of the MIC/MIF," it added.

The MIF aims to generate "optimal absolute return" on its investments and preserve the long-term value of the fund, the managers said.

This can be achieved through the MIF since it would optimize the use of government financial assets which will be allowed to undertake more investments as compared to the investible funds of government financial institutions (GIFs) that are focused on low risk investments, they said.

Investing in the MIC will allow GIFs to possibly obtain medium, to long-term returns that are higher than their 10-year average, the statement said.

It is also seen to "widen fiscal space" and reduce reliance on local funds and development assistance as the main financing mechanisms for infrastructure projects and act as an "alternative source" to public infrastructure spending, it added.

The officials also allayed fears by highlighting the safeguards placed to minimize risks including regular audits, the creation of a risk management committee and advisory board, transparency measures and the disqualification of potential board members who have pending fraud, money laundering and corruption cases.

Professors from the UP School of Economics, who are colleagues of the heads of the DOF, NEDA and BSP, earlier released a paper criticizing the MIF as "still beyond repair" despite changes to its earlier provisions.

“We find that the MIF violates fundamental principles of economics and finance and poses serious risks to the economy and the public sector — notwithstanding its proponents’ good intentions,” the economists said.

Congress had earlier approved the Senate version of the bill. It will be submitted to Malacanang for Marcos' signature.

• Maharlika fund weakens Bangko Sentral, puts economy at risk, groups warn
• 'So much distrust naman': Diokno defends Maharlika from UP economists
• EXPLAINER: The Maharlika Investment Fund, as approved by Congress

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