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MAHARLIKA

INVESTMENT FUND

Designed to advance the Philippines' long-term development goals
through the effective intergenerational management of government financial assets​​

WHAT IS MAHARLIKA?

The MIF: A Vehicle for Economic Growth

Joint Statement by the Economic Managers

READ THE FULL STATEMENT

FAQs on the IRR of the Maharlika Investment Fund Act of 2023

Maharlika Investment Corporation (MIC)

1. What is the mandate of the MIC?

The MIC is mandated to act as the sole vehicle for the purpose of mobilizing and utilizing the MIF for investments in transactions in order to generate optimal returns on investments (ROIs), while contributing to the overall goal of reinvigorating job creation and accelerating poverty reduction by sustaining the economy’s high growth trajectory, while ensuring sustainable development.

2. How much is the capitalization of the MIC?

The Maharlika Investment Corporation shall have an authorized capital stock of 500 billion pesos (approximately 8.9 billion dollars), the 375 billion pesos of which shall constitute common shares available for the subscription of the National Government, its agencies or instrumentalities, GOCCs or Government Financial Institutions (GFIs). The remaining 125 billion pesos in capital shall correspond to the preferred shares available for the subscription of the National Government, its agencies or instrumentalities, GOCCs or GFIs, and reputable private financial institutions and corporations.

3. How much is the initial capitalization of the MIC?

Of the 375 billion pesos capital which correspond to the common shares, 125 billion pesos  (or about 2.2 billion dollars) shall be initially subscribed by the National Government, and the two Government Financial Institutions (GFIs), the Land Bank of the Philippines and the Development Bank of the Philippines. The National Government shall contribute 50 billion pesos, while the Land Bank of the Philippines and the Development Bank of the Philippines shall contribute 50 billion pesos and 25 billion pesos, respectively. The contributions from the two founding GFIs shall be fully paid upon the incorporation of the MIC. 

4. Where will the National Government source its 50 billion pesos contribution to the initial capitalization of the MIC?

The 50 billion pesos contribution of the National Government to the initial capitalization shall be sourced from the following:

  • One hundred percent (100%) of the dividends of the Bangko Sentral ng Pilipinas (BSP) remitted to the National Government for the first and second fiscal years upon the effectivity of the Maharlika Investment Fund Act of 2023;
  • Ten percent (10%) of the National Government’s share to the income of the Philippine Amusement and Gaming Corporation (PAGCOR), and ten percent (10%) of revenues from gaming operations of other government-owned gaming operators/regulators;
  • government assets and proceeds from privatization government assets, and;
  • other sources such as royalties and/or special assessments. 

5. How can the MIC increase its capitalization?

To increase the capitalization of the MIC, the Board of Directors of the MIC, upon recommendation of the Advisory Body, may request Congress for legislation to increase the capitalization of the MIC.

DISCOVER MORE

PBBM signs Maharlika
Investment Fund Act
Into Law

President Ferdinand R. Marcos Jr. signs the Maharlika Investment Fund (MIF) Act of 2023  in a ceremony at the Kalayaan Hall in Malacañan Palace on July 18, 2023.

The MIF is the Philippines’ first-ever sovereign wealth fund aimed at optimizing the country’s national funds by generating returns to support the Administration’s economic goals.

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© Maharlika Fund 2023