Bangko Sentral ng Pilipinas Governor Felipe Medalla on Monday expressed his approval of the Senate Maharlika Bill, which seeks to establish a national development investment fund.
On the sidelines of a business forum in Bonifacio Global City, Medalla said the bill was a product of long periods of discussions and that it has evolved into a more targeted and well-governed investment fund.
“The bill as it is now is okay,” Medalla said.
“It is no longer a sovereign wealth fund but more of a national development investment fund that will be used to achieve the strategic objectives of the national government, such as climate change mitigation,” he added.
Medalla also said the bill has many good governance principles, such as a clear mandate, a sound investment strategy, and a transparent and accountable management structure.
In the past, Medalla expressed caution regarding initial proposals to allocate the country’s US dollar reserves to fund the Maharlika Investment Fund during discussions in the Lower House regarding the establishment of a wealth fund.
Medalla expressed concern that diverting the gross international reserves would significantly impede the ability to defend the peso in the event of external shocks or depreciation, as happened in 2022 when the local currency reached its weakest point at P59 against the US dollar.
Further, Medalla clarified that the BSP is not an investor in the MIF, as the dividends earned by the BSP already belong to the government. He emphasized that it is the government, not the BSP, that is investing in the fund.