The Government of the Philippines has launched its first sovereign wealth fund to accelerate the modernisation of the country’s infrastructure. The Maharlika Investment Fund (MIF) will reduce reliance on borrowing to finance infrastructure development.

To raise capital, the fund will be allowed to issue USD9.19 billion worth of preferred and common shares which can be purchased by the national government, state-run firms, and banks.

Initially, concerns were raised, including those from the central bank, regarding the transparency in the fund’s governance. However, revisions have been made to address these concerns and provide clarity on how the fund will be managed and financed.