‘MIF could attract P2 trillion valuation upon listing’

MANILA, Philippines — The Maharlika Investment Fund (MIF) could attract a valuation of P2 trillion if it is listed in the Philippine Stock Exchange (PSE), Albay Rep. Joey Salceda said at the Forum on Legislative Reform for the Capital Market held yesterday.

Salceda, one of the economists in Congress and a former presidential economic adviser and securities analyst, has been urging economic managers to commit to listing the MIF in the local stock market and in markets abroad.

“MIF is allowed to undertake joint ventures and sub-funds. It will be listed in the stock market eventually. It could attract a valuation of P2 trillion if listed,” Salceda said in his presentation yesterday.

He said the MIF’s operations are expected to commence by the end of the year while the initial investment activities will start in the first quarter of 2024.

Salceda also said that because listed companies are subject to stricter disclosure standards this would be a strong safeguard for the fund.

Economics professors from the University of the Philippines earlier noted that the MIF violates fundamental principles of economics and finance and poses serious risks to the economy and the public sector.

Salceda said Congress is helping “rebuild economic momentum to seven or eight percent in 2024 onwards.”

On Aug. 23, Salceda filed House Bill No. 8958, or the proposed Capital Markets Efficiency Promotion Act, that seeks to lower taxes on stock transactions to attract more investors into the market.

The bill has since undergone deliberations at the committee level and has been substituted by House Bill No. 9277, filed on Sept. 21.

The proposal aims to bring the stock transaction tax (STT) down to 0.1 percent of the stock value from the current rate of 0.6 percent. The tax on dividends of foreign non-residents will likewise be reduced to 10 percent from 25 percent.

For its part, the PSE is working on several intitiaves to boost the market including short selling which will be launched on Oct 23, PSE president and CEO Ramon Monzon said.

It is also now implementing a shortened the settlement cycle from three days to two days after the trade date.

This was made possible after the Securities and Exchange Commission amended the 2015 Implementing Rules and Regulations of Republic Act No. 8799, or the Securities Regulation Code.