Villar estimates gov't to earn P12.5 billion from Maharlika fund
The government is expected to earn P12.5 billion every year from the Maharlika Investment Fund (MIF) if it has a 10 percent return on investment, Senator Mark Villar said Thursday.
“The initial capitalization of Maharlika is 125 billion. If they get 10 percent, then that means the government will earn 12.5 every year,” Villar told dzBB.
Congress passed the Maharlika bill late Wednesday. The bill is expected to be transmitted to the Palace to be signed by President Ferdinand Marcos Jr., who certified the bill as urgent in the Senate last week.
Villar, who chairs the Senate Committee on Banks, Financial Institutions, and Currencies, said the MIF is a "low-risk" investment that will result in a yield of return estimated at eight to 10 percent.
“I don’t think Maharlika is high risk. It’s low risk with a good yield. It’s not low yield. Maybe it’s medium yield but low risk…We don’t want it to be too high risk,” he said.
“The initial projection of Maharlika…the estimated target is eight to 10 percent yield, but it can be higher. But it still depends. I believe we can reach the eight to 10 percent target,” he added.
Villar said aside from generating revenue for the government, the MIF is also expected to create more jobs.
“Now that we have an investment fund, it will generate revenues for the government. Because the government has investible funds, but instead of spending them immediately, they can invest in infrastructure that can help the public,” Villar said.
“Secondly, investors will invest in our local (industries), and when they invest, our countrymen will have jobs. In fact, the NEDA (National Economic Development Authority) estimates that because of investments in Maharlika, there will be an additional 350,000 jobs,” he added. Jaspearl Tan/DMS
