THE PHILIPPINES is not ready for a sovereign wealth fund amid the lack of fiscal space and high debt levels, as well as concerns over possible mishandling of public funds, analysts said.
“At this point in time, the country is not in a position to set up a sovereign wealth fund given the government’s tight fiscal position and large debt-to-gross-domestic product ratio. Furthermore, the government doesn’t enjoy any fiscal bonanza from a commodity price boom, such as minerals or oil,” Calixto V. Chikiamco, Foundation for Economic Freedom president, said in a Viber message.
“There is no value added to create another separate entity to invest the funds of SSS and GSIS. The pension funds have investment committees that invest the money prudently on behalf of its members. If the idea is to generate higher returns, it may come at higher risk, which is not within the investment guidelines for the investment of pension funds,” he said.
“We have no oil, we have limited natural gas and the current revenue-sharing framework on mining does not favor the government,” Mr. Ridon said, adding that the Philippines does not have any surplus government funds. Malaysia’s 1MDB raised billions of dollars from bond issuances to be spent for projects, but over $4.5 billion were allegedly misappropriated by key oAnalysts also noted widespread opposition to the MIF is due to a lack of trust in the government, which has been hounded by corruption issues in recent years.
Under the bill, the Maharlika Wealth Fund Corp., the state corporation that will manage the fund, will be chaired by Mr. Marcos.cient guarantees through strong mechanisms of transparency and oversight in efforts to push for the use of public funds for investment purposes,” Francisco A. Magno, who teaches political science and development studies at the De La Salle University, said in a Messenger chat.
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