DOF sees MIC operational before yearend
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HE Finance Department expects the Maharlika Investment Corp. (MIC) to be operational before the end of the year as President Marcos Jr. is on track to sign into law the Maharlika Investment Fund (MIF) before his second State of the Nation Address (SONA). Finance Secretary Benjamin E. Diokno said the MIC would have at least P75 billion in paid-up capital within the year, all coming from the Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP). Diokno added that the Executive branch would ensure timely
preparation and completion of the implementing rules and regulations (IRR) of the proposed MIF law. Marcos is expected to sign the MIF bill into law before his 2nd SONA in July, Diokno disclosed. However, he revealed that the bicameral conference committeeapproved and ratified version of bill has not yet been transmitted to the President for his signature. National Treasurer Rosalia V. De Leon said the national government would be “very aggressive” in generating global attention to generate more funding for the MIF. De Leon explained that at its initial fund of P75 billion, the MIC
would not be able to bankroll projects on its own. However, De Leon emphasized that the MIC would enter into joint ventures and co-financing in its early stages to be able to initiate investments and eventually profits.
GSIS, SSS, can still invest?
DIOKNO revealed that the state pension funds like the Government Service Insurance System (GSIS) and the Social Security System (SSS) can still invest directly in projects where the MIC is involved. He emphasized that the investments must be made by GSIS or SSS directly into the projects and not into the equity of the MIF.
De Leon concurred with Diokno, noting that the GSIS and SSS can be co-financers or enter into joint ventures with the MIC. “They cannot increase equity, but joint ventures are okay. They can invest at the project level,” she said. Senators explicitly included a provision in the MIF bill that state pension funds like GSIS and SSS— as well as the Philippine Health Insurance Corp., Home Development Mutual Fund, Overseas Workers Welfare Administration and Philippine Veterans Affairs Office—cannot invest directly or indirectly in the MIF and MIC. See “DOF,” A2
BusinessMirror Monday, June 5, 2023 Vol. 18 No. 231
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PHL COULD BAG ELUSIVE ‘A’ RATING BY 2028—DOF w
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By Jasper Emmanuel Y. Arcalas
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China vows cooperation as RCEP fully in effect
@jearcalas
HE Philippines could achieve the coveted “A” credit rating before President Marcos Jr. steps down from office, according to projections by Finance Secretary Benjamin E. Diokno.
Diokno said the Philippines has been on the right path to an “A” credit rating until the Covid-19 pandemic happened, halting economic growth and development. However, he expressed optimism that the country has regained its footing and is on track toward getting the elusive A credit rating that would enable the Philippines to borrow at lower costs. “We are getting there. It is possible within this administration,” he told reporters in a recent press briefing. Diokno noted that the Philippines already has an A- credit rating from the Japan Credit Rating Agency and an AAA rating from China Lianhe Credit Rating Co. (Related story: https://businessmirror. com.ph/2023/03/10/japan-credit-rater-affirms-phls-ratingcites-economic-resilience/) However, the Philippines has yet to achieve an A rating from Fitch Solutions, Moody’s and Standard & Poors (S&P). At present, the Philippines has a BBB rating from Fitch Solutions, a Baa2 from Moody’s and a BBB+ from S&P. Diokno pointed out that the Philippine economy is doing well in achieving its A target, as it recently received an outlook upgrade from Fitch while noting that a third of the world was downgraded. See “‘A’ Rating,” A2
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PHL, 7TH AMONG TOP NON-OIC DESTINATIONS FOR MUSLIMS By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
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HE Philippines stepped up to seventh place as an attractive destination for Muslim travelers, tying with other non-members of the Organization of Islamic Cooperation (non-OIC) like Germany, South Africa and Spain.
The country’s ranking was included in the Mastercard-CrescentRating Global Muslim Travel Index (GMTI) 2023, and showed an improvement from the eighth place it received in 2021 and 2022. Singapore once more topped the list of non-OIC destinations. CrescentRating is the world’s leading authority on halalfriendly travel. In the global ranking of 138 coun-
tries, the Philippines ranked number 36, an improvement by one place, with an overall performance score of 46 on access, communications, environment, and service. Indonesia regained its first-place ranking, which it lost after 2019. For this year’s GMTI, as in 2022, Ukraine and Russia were not included due to their ongoing war. See “PHL” A2
HINA has reiterated its commitment to give full cooperation on the Regional Comprehensive Economic Partnership (RCEP) agreement, which took effect on Friday for the Philippines—confirming that the RCEP agreement is now in effect for all 15 members. The full RCEP implementation reflects the determination and actions of its 15 members—10 members of the Association of Southeast Asian Nations, China, Japan, the Republic of Korea, Australia and New Zealand—in supporting an open, free, fair, inclusive and rules-based multilateral trading system, China’s commerce ministry commented. The RCEP agreement was signed in November 2020 by the 15 AsiaPacific countries after eight years of negotiations. It entered into force on the first day of 2022, creating the world’s largest trade bloc. The full implementation will inject strong momentum into regional economic integration, comprehensively enhance the level of trade and investment liberalization and facilitation in East Asia, and contribute to the long-term stable development of the regional and global economy, said the commerce ministry. In 2022, trade between China and other RCEP members increased 7.5 percent year on year to 12.95 trillion yuan (about 1.82 trillion US dollars), while their investment in China, in actual use, went up 23.1 percent to 23.53 billion US dollars, data showed. See “China,” A2
PESO EXCHANGE RATES n US 56.2190 n JAPAN 0.4050 n UK 70.4312 n HK 7.1804 n CHINA 7.9193 n SINGAPORE 41.7302 n AUSTRALIA 36.9415 n EU 60.5029 n KOREA 0.0428 n SAUDI ARABIA 14.9914 Source: BSP (June 2, 2023)