(Photo courtesy: PCO)

QUEZON CITY, (PIA) -- President Ferdinand R. Marcos Jr. on Wednesday emphasized the value of the proposed Maharlika Wealth Fund to potential investors, saying it is a “tool” his administration will use to diversify the country's financial portfolio.

"Such a fund is one tool among many in our efforts to diversify our financial portfolio, which includes our existing institutions pursuing investment that will generate stable returns, but also welfare effects spanning employment creation, improvement of public service, and a decrease in costs of economic activities," Pres. Marcos said when he mentioned the proposed sovereign wealth fund during his opening remarks at the Philippines Country Strategy Dialogue in Davos, Switzerland. 

"The process of establishing our first-ever sovereign wealth fund is underway," he added. The President is currently abroad to participate in the 2023 World Economic Forum.

Pres. Marcos also expressed hope that the investment fund will be the government’s mechanism to increase the country's economic stability and alleviate poverty.

Before leaving the Philippines, the Chief Executive said the proposed wealth fund will make investments in the basic areas of agriculture, energy, digitalization and climate change. 

To recall, the House of Representatives has approved on final reading House Bill 6608, which creates the Maharlika Investment Fund (MIF) and was certified as urgent by the President.

According to the measure, the MIF would be funded by the investible resources of the Landbank of the Philippines (P50 billion), the Development Bank of the Philippines (P25 billion), and the dividends/profits of the Bangko Sentral ng Pilipinas. (PIA-NCR)