The president of Development Bank of the Philippines has expressed full support for the establishment of a sovereign wealth fund (SWF), citing the need to boost investments in critical sectors to sustain the country’s growth.
Emmanuel Herbosa, DBP president and chief executive officer, said it is crucial to broaden investments in critical areas such as food, water, green energy, agro-industrial ventures, telecommunications, public infrastructure, and road networks toll-ways, which offer better rates of return and greater socio-economic impact.
“From my personal standpoint, the creation of an SWF is a superb opportunity to address the dearth in sources of long-term capital which is integral to support these capital intensive investments,” said Herbosa.
“As head of a government bank, the SWF is closely aligned with our operating principle of bolstering economic additionality through timely and meaningful support of critical industries and sectors.”
The Maharlika Investment Fund (MIF) bill , which provides for the establishment of a sovereign welath fund, has been passed on third and final reading in the House of Representatives. It garnered the support of 90 percent of congressmen.
It underwent several refinements and hurdled grueling interpellations by the opposition bloc in the lower house.
Herbosa said the additional safeguards in the proposed measure such as heavy scrutiny by the Commission on Audit apart from regular examinations by both an internal and external auditor ensured that the fund would be adequately shielded from fraud, abuse and undue political interference.
“At this juncture it’s best that we allow the bill to take its proper course in the legislative mill as I believe this would lead to a solid and watertight law in view of the purification and purging process that it underwent,” said Herbosa.