Other Gulf states interested in MIF
By Nidz Godino
"We introduced to them Maharlika Investment Fund, and that was, that has proceeded very quickly and we have gone into, we have already started, we detailed talks with their PIF ,Public Investment Fund, equivalent in Saudi Arabia… their investment fund and how we can do it, how we can work together," President Ferdinand Marcos Jr. said aside from Saudi Arabia, other countries in Gulf region have signified interest in MIF.
In interview with Philippine media delegation at InterContinental Hotel FMJ is "encouraged" by positive response not only of Saudi Arabia, but also of other members of Gulf Cooperation Council (GCC) to his invitation for them to invest in MIF.
FMJ and other leaders of Association of Southeast Asian Nations met with GCC leaders for inaugural ASEAN-GCC Summit aimed at strengthening ties and cooperation between two regional groupings.
GCC members include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates; while Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam compose ASEAN.
Malacañang earlier said two of Saudi's largest financial institutions PIF of Saudi Arabia and Jada are considering putting money into MIF, Philippines' first sovereign wealth fund.
PIF is one of world's largest sovereign wealth funds, while Jada was established by PIF with nearly $1 billion in capital.
"And it is not only Saudi Arabia, it is also other Gulf countries who have expressed interest…and I am very encouraged and quite happy by fact reaction we got from our partners in Saudi Arabia and in other countries has been very, very encouraging and they really want to have, to help and invest in MIF because they really see it as good investment," FMJ said.
FMJ did not mention other Gulf states express interest in MIF.
Chief Executive believes MIF would get interest of more foreign investors once it becomes operational.
"I'm confident once we get it operationalized, once we are able to start talking in detail with not only investment funds but even private corporations and other governments as well, and precisely role we have envisioned for, sovereign fund, Maharlika Fund. And that is direction it has taken," he said.
FMJ has suspended rollout of implementing rules and regulations (IRR) of Republic Act 11954 or Maharlika Investment Fund Act of 2023.
FMJ said implementation of MIF was not put on hold contrary to reports, as measure is just "being improved" to make it "as close to perfect and ideal as possible."
Malacañang earlier released copy of memorandum signed by Executive Secretary Lucas Bersamin for President suspending implementation of IRR of RA 11954.
Finance Secretary Benjamin Diokno, who was part of Marcos' delegation on Saudi two-day visit, earlier said MIF would be fully operational by end of the year.
RA 11954, signed by Marcos in July, creates Maharlika Investments Corp. designed to be sole vehicle for mobilizing and utilizing MIF for investments.
MIC is expected to have at least P75 billion in paid-up capital this year, with P50 billion sourced from Land Bank of the Philippines and P25 billion from Development Bank of the Philippines.
Fund will be invested in wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate and high-impact infrastructure projects.
It was "short but successful" visit, FMJ said after arriving from Saudi Arabia where he attended first summit of leaders of Southeast Asian nations and Gulf states.
In his arrival statement delivered at Villamor Airbase, FMJ said Association of Southeast Asian Nations-Gulf Cooperation Council (ASEAN-GCC) Summit was landmark event provided Philippines with opportunity to project its longstanding promotion of rules-based international order.
Such order is essential to maintain peace, security and stability in two regions, he added.
"I have arrived back from Riyadh, Saudi Arabia after very short but I can say successful and productive visit," FMJ said.
According to FMJ summit marked first time leaders from ASEAN and GCC states met and tackled regional and international issues and agreed on future of their cooperation.
"I highlighted, in particular, ways we can collaborate in areas of energy, food security and enhancement of logistic chains for continued progress of our interdependent global economy… I underscored in this regard our commitment to full implementation of ASEAN-GCC Framework of Cooperation for 2024 to 2028," he added.
FMJ said during summit, he advocated for safeguarding of rights and welfare of more than two million Filipinos in GCC countries and called for their upskilling so they could meet demands of increasing digital transformation in modern workplace.
"Let me assure you we will continue to advance our national interests as we further expand our partnerships abroad," he added.
Summit also allowed ASEAN and GCC leaders to express their views on conflict in Israel and Gaza.
"I shared our hope for peace, should prevail and for welfare and safety of civilians to be upheld in accordance with international humanitarian law," FMJ said.
FMJ also reported signing of a memorandum of understanding between EEI Corp. and Samsung Engineering NEC Co. Ltd., joint venture between Samsung Engineering and Al Rushaid Petroleum Investment Corp.
Under agreement, valued at $120 million, 500-person capacity training facility would be established in the Philippines to upskill Filipino employees in various professions in construction industry. FMJ said facility seeks to train at least 3,000 Filipinos a year and more than 15,000 Filipinos in next five years.
Trade department, President added, reported three other business-to-business agreements that were discussed among Saudi and Philippine human resource companies for training and employment of Filipinos across wide range of industries, including health care and hotel and restaurant and catering and maintenance and operations, among other operations.
"These agreements are expected to generate more than $4.2 billion and an additional 220,000 jobs for Filipinos over next few years," FMJ said.
During visit, FMJ met with Filipino community in Saudi Arabia and assured them of continued support and assistance.
He also had meetings with Kuwaiti Crown Prince and Crown Prince and Prime Minister of Saudi Arabia.
FMJ and Crown Prince of Saudi Arabia exchanged views on "issues of common concern." He was hopeful their countries could sustain momentum of high-level exchanges as they expand cooperation in key areas.
"It was very encouraging because Crown Prince made it very clear to me Filipinos will play very important part in continuing growth of their economy...and there is new aspect to our relationship with Saudi Arabia," FMJ said.
According to FMJ, relationship between Philippines and Saudi Arabia would become " two-way street" as Middle Eastern country would invest more in the Philippines.
"Whereas before essentially it was just for employment and we sent our people, our OFWs, now, they have extended that relationship and say time to invest to Philippines and to support their food supply situation and to support industries they are going to expand and they are going to establish, they see ASEAN and Philippines, in particular, as very as area of very good potential for development and transformation of their economy," he said.
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