Infrastructure investments are crucial for economic growth and inclusion, but the pandemic has strained public finances, challenging the sustainability of the government's infrastructure push. To address this, the proposal for the Maharlika Investment Fund (MIF), a sovereign wealth fund (SWF), has emerged as an alternative financing source for capital-intensive infrastructure projects.
This policy brief examines the MIF's features, addresses concerns raised, and provides recommendations. Evaluating provisions, data, and SWF literature, it appears that the current conditions may not favor the creation of the MIF. Potential implications on the central bank's mandate further complicate matters. Success hinges on investment strategy and robust safeguards. While acknowledging infrastructure's importance, this brief advises careful assessment and deliberation before establishing the MIF. Timing, financial prudence, and alignment with economic goals are crucial. By proceeding thoughtfully, the government can optimize resources and promote sustainable infrastructure development in the Philippines.