A sovereign wealth fund (SWF) is a type of investment fund owned and operated by a government,

typically using surplus revenues or reserves. These funds are invested in financial and real assets with
the goal of promoting economic development, increasing savings, and stabilizing budgets.

The Maharlika Investment Fund (MIF) is a proposed sovereign wealth fund in the Philippines designed to
invest in key sectors such as foreign currencies, corporate bonds (both domestic and foreign),
commercial real estate, and infrastructure projects. Its purpose is to fund the country's priority
programs and promote economic growth. Introduced in 2019 as House Bill No. 6398, the MIF is
currently undergoing deliberations in the Philippine Congress. It is seen as a potential solution to
stabilize the country's economy and reduce dependence on traditional sources of revenue like taxes and
remittances from overseas.

Over the past 30 years, several ASEAN nations have established their own sovereign wealth funds, such
as Singapore's Government of Singapore Investment Corporation (GIC) and Malaysia's Khazanah
Nasional Berhad. These funds have played a significant role in their respective countries' economic
growth and development. The Maharlika fund, in particular, will be used by the government to invest in
key sectors like foreign currencies, domestic and foreign corporate bonds, commercial real estate, and
infrastructure projects to help fund the country's priority programs. The Maharlika Investment Fund
(MIF) is a proposed sovereign wealth fund in the Philippines that aims to invest and grow the country's
wealth. The MIF is contained in House Bill No. 6398, which was introduced in 2019 and is currently
undergoing deliberations in the Philippine Congress. The proposed sovereign wealth fund is seen as a
potential solution to help the country's economy become more stable and less reliant on traditional
sources of revenue such as taxes and overseas remittances. If established and managed properly, the
MIF has the potential to bring about significant economic benefits to the country. However, there are
also concerns about transparency, accountability, and political interference that need to be addressed
to ensure that the fund operates in the best interests of the country and its people.

It is patterned after the SWFs of dozens of other nations, including Singapore, China, Hong Kong, South
Korea, and Malaysia. Singapore's GIC, for instance, has consistently delivered strong returns on its
investments since its establishment. It has invested in a wide range of sectors, from real estate to
private equity, and has helped to diversify Singapore's economy beyond its traditional sources of
revenue. GIC's success can be attributed to its prudent investment strategy, long-term outlook, and
rigorous risk management.

Malaysia's Khazanah Nasional Berhad, on the other hand, was established in 1993 to promote
sustainable economic development in the country. It has invested in various sectors, including
healthcare, education, and technology, to support Malaysia's transition into a high-income nation.
Khazanah has also played a crucial role in developing Malaysia's Islamic finance industry, which has
become a significant contributor to the country's economy.