Philippine Lawmakers Approve $8.9 Bn Sovereign Wealth Fund: Congress

Philippine lawmakers approved the creation of an $8.9 billion sovereign wealth fund on Wednesday to boost growth and cut poverty, but critics insisted it was a "scam" and should be scrapped

Manila, (APP - UrduPoint / Pakistan Point News - 31st May, 2023 ):Philippine lawmakers approved the creation of an $8.9 billion sovereign wealth fund on Wednesday to boost growth and cut poverty, but critics insisted it was a "scam" and should be scrapped.

House of Representatives deputy speaker Aurelio Gonzales declared the Senate's version of the bill approved during a session.

President Ferdinand Marcos had called for a swift passage of the bill, filed by his son and cousin late last year, to enable the debt-laden government to earn extra funds to finance infrastructure projects.

The national government will be the biggest contributor to the 500-billion-peso "Maharlika Investment Fund", drawing seed funds from the central bank, gaming revenue, and two government-owned banks.

Private financial institutions and corporations will also be allowed to invest.

The original proposal was for a $4.9 billion fund that would be partly bankrolled by state-run pensions for government and private sector workers, sparking public fears that retirement savings could be put at risk.

The final version of the bill said pension funds would not have to contribute.

"I assure our countrymen they need not worry. All the safeguards that could be put in were put in place," Senate President Miguel Zubiri told reporters.