Philippine lawmakers are looking to tap central bank profits to seed a proposed sovereign wealth fund, after an earlier plan to use pension funds for the purpose triggered opposition.
Authors of the bill creating the Maharlika Investments Fund decided to change the source of funds after a meeting with economic managers, said Marikina Rep. Stella Luz A. Quimbo, one of the proponents.
“It’s good that we conducted a series of consultations,” Ms. Quimbo said in a statement posted on the House of Representatives’ Facebook page late Wednesday. “Our countrymen’s concerns have been validated.”
Bangko Sentral ng Pilipinas Governor Felipe M. Medalla last week raised concerns over the wealth fund plan, including on its governance and potential impact on the monetary authority’s independence. Administration officials such as Finance Secretary Benjamin Diokno have allayed these concerns.
The House appropriations committee will tackle the changes on Friday, Ms. Quimbo said.— BloombergThe planned wealth fund’s purpose is to invest “existing surplus capital of the government,” she said, adding that safety nets will also be added to the proposal.