Planned distribution of profits to poor ‘defeats’ Maharlika’s objectives — PSE exec

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Metro Manila (CNN Philippines, February 27) — The top official of the Philippine Stock Exchange (PSE) expressed reservations on the proposal to distribute the Maharlika fund’s earnings to the poor.

During a Senate hearing on Monday, PSE President Ramon Monzon said a section in the proposed bill that seeks to provide at least 25% of the profits of Maharlika Investment Corp., a corporate body that will manage the Maharlika Investment Fund (MIF), to families living below the poverty threshold could hinder the purpose of a sovereign wealth fund.

The same section stated that the remainder of the net profits would be remitted to the national government for its social welfare projects.

He noted that not reinvesting earnings and other long-term investment opportunities “will defeat the objectives of growing the fund to a size sufficient to build intergenerational wealth and pursue investment goals.”

Monzon said he hopes Congress could reconsider that section of the bill.

The executive, meanwhile, reiterated the PSE’s support for the Maharlika fund.

“The MIF has the potential to address major infrastructure gaps in the country and provide the government much needed funds to deliver basic services without incurring additional leverage,” Monzon said.