Gov’t defends Maharlika Fund’s distinct function

Malacañang defended the continuing role of the Maharlika Investment Fund (MIF) last week, saying it was created for a purpose different from the developmental financing functions of government-owned financial institutions.

Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro said the MIF remains focused on generating long-term value through strategic and profitable investments that support the country’s socioeconomic development.

She said government financial institutions such as the Land Bank of the Philippines, Development Bank of the Philippines (DBP), Philippine Guarantee Corporation and Small Business Corporation are better positioned to provide direct financial assistance to micro, small and medium enterprises (MSMEs).

“Ang Land Bank, ang DBP, ang Philippine Guarantee and Small Business Corporation ay equipped. Sila yung equipped to provide financing to MSMEs bilang parte ng kanilang developmental mandates,” Castro said during a Palace press briefing.

Castro stressed that the MIF operates under a separate mandate.

“Ang Maharlika Investment Fund naman ay meron siyang sariling mandato,” Castro said.

She said the fund is tasked with making strategic and profitable investments that contribute to socioeconomic development while preserving and increasing its value and generating sustainable returns.

“It is intended to mobilize and leverage government capital for long-term investments in strategic sectors and development projects,” Castro added.

Castro said the different mandates of the MIF and government financial institutions should prevent the fund from being viewed as a replacement for the financing programs of state-owned banks.

The Palace maintained that the two serve complementary roles in the economy, with government financial institutions providing developmental financing while the Maharlika Fund focuses on long-term strategic investments.