MANILA -- The Bureau of Treasury (BTr) approved last week the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 11954, or the Maharlika Investment Fund Act of 2023, prescribing the law’s guidelines, procedures, and standards for implementation.

Under the IRR, the Maharlika Investment Corp. created under RA No. 11954 shall act as the sole vehicle for mobilizing and utilizing the MIF for investments in transactions to generate optimal returns on investments (ROI) while reinvigorating job creation and accelerating poverty reduction by sustaining the economy’s high growth trajectory.

The MIC shall have an authorized capital stock of P500 billion to be divided into five billion shares, with a par value of P100 per share.

There will be common shares of three billion seven hundred fifty million (3,750,000,000) equivalent to three hundred seventy five billion pesos (PhP375,000,000,000) to be subscribed by the national government and its agencies and instrumentalities while the preferred shares will be one billion two hundred fifty million (1,250,000,000) equivalent to one hundred twenty five billion pesos (PhP125,000,000,000) for subscription by the national government and its agencies and instrumentalities.

The MIC will have nine members of the Board of Directors, with the Secretary of Finance sitting in an ex-officio capacity and the President and Chief Executive Officer (CEO) of the MIC as vice-chairperson.

Other board of directors will be the President and CEO of the Land Bank of the Philippines (LBP), the President and CEO of the Development Bank of the Philippines (DBP), two regulator directors, and three independent directors from the private sector.

The board of directors’ primary function is to govern and manage the MIC, its assets, and investments in accordance with RA No. 11954.

Based on the IRR, a Maharlika Investment Fund Joint Congressional Oversight Committee (MIF-JCOC) will be created to oversee, monitor, and evaluate the implementation of RA No. 11954, which will be composed of seven members each from the House of Representatives and the Senate.

The IRR, approved by the BTr last August 22 in consultation with the LBP and DBP, shall take effect 15 days after its complete publication.

The Maharlika Investment Fund (MIF) was created to promote socio-economic development, which will be achieved by making strategic and profitable investments in key sectors to preserve and enhance the long-term value of the fund.

It also aims to obtain the optimal absolute return and achievable financial gains on its investment and to satisfy the requirements of liquidity safety and yield to ensure profitability. (PND)