Maharlika told to invest in RE, defense sectors
By John Victor D. Ordoñez, Reporter
THE MAHARLIKA Investment Corp. (MIC) should look at investments in renewable energy (RE), technology and the local defense manufacturing sector as the Philippines’ sovereign wealth fund continues to scout for opportunities, analysts said at the weekend.
“The MIC should focus on emerging sectors which have the prospect of rapid capital growth such as energy and tech,” Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in a Facebook Messenger chat.
“Renewable energy projects may be a particular focus as the private sector may have difficulty keeping up with the demand for more generation facilities in the future,” he added.
Finance Secretary Ralph G. Recto, who chairs the MIC board, earlier told senators the corporation plans to finalize potential investments by yearend.
The Maharlika Investment Fund has yet to make any investments since President Ferdinand R. Marcos, Jr. signed the law creating the country’s first wealth fund.
MIC Chief Executive Officer (CEO) Rafael D. Consing, Jr. is “looking for opportunities” but had not approached the board to approve investments yet, Mr. Recto told a Senate finance committee hearing with the Development Budget Coordination Committee on Aug. 14.
Mr. Consing has said the board would invest in the energy sector particularly in off-grid power and infrastructure projects, the Finance chief said.
“I would certainly look into investing in the self-reliant defense industry that is about to be set up after the enactment of the Self-Reliant Defense Posture law,” Michael Henry Ll. Yusingco, a policy analyst and a senior fellow at the Ateneo de Manila University Policy Center, said in a Facebook Messenger chat.
Mr. Marcos is set to sign into law a bill that seeks to boost the country’s defense program through investments in local defense equipment manufacturing amid growing tensions with China.
Congress ratified the bicameral conference committee report of the measure on Aug. 12, which offers incentives to attract foreign defense industry investors.
He said the government should explore investment opportunities other than traditional public works such as roads and bridges “given the high probability of this effort getting politicized.”
John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the real estate and technology sectors could also be viable prospects for the MIC, saying the development of these sectors could yield decent returns.
Last month at a Senate energy committee hearing, Energy Undersecretary Sharon S. Garin said battery technology is evolving fast enough for the Philippines to meet its RE targets. She said the agency was looking to attract more battery system companies to introduce these advanced systems for local energy projects.
The government aims to raise the share of RE in the energy mix from 22% to 25% by 2030 and to 50% by 2040.
The Philippines is hard-pressed to find new power sources as its only indigenous source of gas, the Malampaya gas field, dries up. It is expected to run out of easily recoverable gas by 2027.
Mr. Consing has said the MIC plans to raise about $1 billion for energy projects on grid modernization, electricity distribution and new sources to “diversify supply and create price stability.”
“The Maharlika Investment Fund reducing reliance on official development assistance and widening fiscal space would depend on whether it can leverage its investments by attracting foreign or local funds to co-invest with it,” Calixto V. Chikiamco, Foundation for Economic Freedom (FEF) president, said in a Viber message.












