The Philippine government has approved the Maharlika Investment Fund (MIF), a sovereign wealth fund aimed at benefiting the country.

The MIF is anticipated to generate several positive impacts, including:

1. Augmented investment capital: The MIF is designed to function as a long-term source of investment capital, fostering economic growth and facilitating job creation.

2. Infrastructure development: The fund can be utilized to finance various infrastructure projects, such as roads, bridges, and airports, thereby enhancing connectivity and making the country more appealing to investors.

3. Increased foreign investment: By attracting foreign investment, the MIF will infuse the economy with fresh capital and technology, leading to a boost in economic growth.

4. Strengthened governance: The fund will be overseen by a board of directors appointed by the president, ensuring enhanced governance and preventing corruption.

The MIF represents the Philippines' first sovereign wealth fund and will be diversified across various assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, commercial real estate, and infrastructure projects. To fulfill its purpose, at least 70% of the fund's assets will be invested within the Philippines, with strict prohibitions against investments in gambling, tobacco, or alcohol production. The MIF is managed by the Maharlika Investments Corporation (MIC). The MIC is a government-owned corporation that was established in July 2023. The MIC is responsible for the overall governance and management of the MIF.