IMF tells PH to follow strict standards for Maharlika Fund

The International Monetary Fund (IMF) has warned that the Maharlika Investment Fund (MIF), a proposed sovereign wealth fund in the Philippines, should adhere to high standards of governance and transparency. IMF Representative to the Philippines Ragnar Gudmundsson said that for a sovereign wealth fund to operate successfully, it should ensure its institutional setup is consistent with high standards of governance, transparency, and accountability to safeguard the country’s wealth. Gudmundsson noted that if the Philippines plans to create a sovereign wealth fund for domestic development instead, like improving the country’s infrastructure, the government needs to consider a few factors. He said that if the fund’s assets are sourced from foreign reserves, using them to pursue domestic investment is similar to using foreign reserves for domestic projects.