PRESIDENT Ferdinand Marcos Jr. said on Monday, July 24, 2023, during his second State of the Nation Address (Sona) that the establishment of the Maharlika Investment Fund (MIF) is vital for the country’s high priority infrastructure projects.
Marcos said his promise to “Build Better More” infrastructure, which is among the keys to continuing economic growth, is currently in progress and being vigorously implemented.
“For strategic financing, some of the nation’s high-priority projects can now look to the newly established Maharlika Investment Fund, without the added debt burden,” he said.
“In pooling a small fraction of the considerable but underutilized government funds, the Maharlika Fund shall be used to make high-impact and profitable investments, such as the Build-Better-More program. The gains from the Fund shall be reinvested into the country’s economic well-being,” he added.
He said the government has allocated P8.3 trillion for the “Build Better More” Program, which is seen to implement 194 infrastructure projects, 123 of which were new.
The flagship projects cover investments in the areas of physical connectivity, water resources, agriculture, health, digital connectivity, and energy.
About 83 percent of the program was physical connectivity infrastructure such as roads, bridges, seaports, airports, and mass transport.
He cited the 1,200-kilometer Luzon Spine Expressway Network Program, which will “effectively connect” Ilocos to Bicol, the Bataan-Cavite Interlink Bridge, the Panay-Guimaras-Negros Island Bridges, and the Samal Island-Davao City Connector Bridge.
As of June 2023, Marcos said the government constructed, maintained, and upgraded more than 4,000 kilometers of roads and around 500 bridges across the country.
He also noted the “crucial” airport and port development projects, including Cebu's Pier 88 smart port, the new passenger terminal buildings of Clark Airport and the Port of Calapan.
The President said the administration also initiated several railway projects, with a total length of more than 1,000 kilometers, including the southern leg of the North-South Commuter Railway System, which is now in full swing.
He said the North-South Commuter Railway System will cut down the usual four hours travel from Pampanga to Laguna to just 2.
“The underlying logic to our infrastructure development is economic efficiency. We are opening up all gateways to mobilize goods and services at less cost and in less time, and ultimately, to drive the economy,” said Marcos.
“Inter-modal connectivity will be a primary consideration. Roads, bridges and mass transport systems will be interconnected. This network will provide access and passage to vital and bustling economic markets, such as agriculture hubs, tourism sites, and key business districts,” he added.
Marcos signed into law the bill creating Republic Act 11954, also known as the Maharlika Investment Fund (MIF) Act of 2023, on July 18 amid criticisms aired by many, including lawmakers due to the loopholes especially in its provisions.
He earlier said that the MIF is “designed to drive economic development” and widen the government’s fiscal space and ease pressure in financing public infrastructure projects.
The MIF seed capital, which will be sourced from the Landbank of the Philippines (P50 billion), Development Bank of the Philippines (25 billion) and National Government (P50 billion) will be used to invest in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure projects.
Marcos reassured the public that to ensure sound financial management, a group of internationally recognized economic managers shall oversee the operations of the MIF, guided by principles of transparency and accountability.
“This guarantees that investment decisions will be based on financial considerations alone, absent any political influence,” he said.
“The funds for the social security and public health insurance of our people shall remain intact and separate,” he added. (SunStar Philippines)