Romualdez said Maharlika could also be used to manage the country’s foreign reserves

and bring in job-generating direct investments, citing the success stories of Singapore's
GIC and the Indonesia Investment Authority.

Although the decision had been well received in other nations, there were also
cautionary tales about the misappropriation of similar cash. At the same time, analysts
stressed the importance of creating such funds at the right time and in the right
economic conditions.

A country with spare cash and resources can create a sovereign wealth fund. Simply
put, such funds can serve as an instrument for a state to invest and raise revenues,
while also attracting firm investments.

MWF will help the administration achieve its Agenda for Prosperity.

The MWF is a sovereign wealth fund which will be used by the government to invest in
a wide range of outlets such as foreign currencies, fixed-income instruments, domestic
and foreign corporate bonds, commercial real estate, and infrastructure projects, among
others.

The Economic Team further assured the public that enough safeguards will be put in
place to ensure accountability and transparency in managing the MWF. These include
abiding by the Santiago Principles of the International Working Group of Sovereign
Wealth Funds, and establishing a three-layer mechanism for checks and balances
which feature internal audit, external audit, and finally, examination and audit by the
Commission on Audit. Additionally, there will be an executive department reportorial
requirement which will be implemented together with congressional oversight.

4 advantages of Maharlika wealth fund

1.The Maharlika Wealth Fund is dedicated to creating long-term wealth for Filipino
citizens. It is aimed to offer a reliable source of income for the Philippines, which will
allow for increased investment and growth of the country.

2. The Maharlika Wealth Fund can help to minimize the country’s dependency on
foreign aid and investments. The nation will become more independent and less reliant
on foreign finance as a result of this.

3. The Fund can be used to finance infrastructure projects, such as roads, bridges, and
other public works. This can serve to improve the quality of life for all citizens and offer
economic possibilities.

4. The Maharlika Wealth Fund can also be used to increase the country’s foreign
reserves, which can help to strengthen the Philippine peso.

The bill aims to “improve investment opportunities, promote productivity-enhancing

investments, and ensure that the Philippines becomes an investment destination,"
which, Romualdez said, is in line with the eight-point socioeconomic roadmap of Marcos
administration.

The lawmaker also noted that the MWF could be used to manage the country's foreign
reserves, as well as create more jobs for Filipinos.

Given the risks these funds could be facing, should the effort see the light of day, even best
intentions don’t count. Besides, the primary assumption of the State that it “owns” the pension
funds belonging to the people, and that it can do with it as it pleases, already threads on very
thin ice.  

It’s natural to expect state players to come to the defense of the Maharlika Wealth
Fund. Why, of course, is a question we know the answer to. Diverting billions of pension
funds
belonging to citizens gives the impression that the country has more than enough
wealth to spread around.