Filipinos slam Marcos’ sovereign fund idea amid fears it could end up like Malaysia’s 1MDB

The president wants the ‘Maharlika Investments Fund’ set up with seed money from state and private pension funds; there is a lot of anger against the idea

But amid worries fund may be used by Marcos and associates to launder money in 1MDB-type embezzlement scandal, some say it may help attract foreign investors

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Philippine President Ferdinand Marcos Jnr. Photo: AP

Published: 8:30am, 6 Dec 2022Updated: 4:25pm, 6 Dec 2022

Philippine President Ferdinand Marcos Jnr’s order for lawmakers to set up a sovereign wealth fund seeded by the pension funds of private and state employees has generated public opposition, with protests planned across the week and a petition against the move drawing some 25,000 signatures.

The stated aim of the “Maharlika Investments Fund” (MIF) is to use profits garnered from investments to finance government projects and reduce poverty, but there is widespread concern the Marcos family and those close to them could use it to launder money and embroil the Philippines in a 1MDB-type embezzlement scandal, as happened in Malaysia.

The fund was recently proposed by three lawmakers related to Marcos Jnr – his cousin, House Speaker Ferdinand Martin Romualdez, his cousin’s wife Yedda Marie Romualdez and his eldest son Ferdinand “Sandro” Alexander Marcos.

“The order came from the President,” said Congressman Joey Salceda, vice-chairman of the House committee on banks and a former research analyst at Ing Barings, speaking on December 1.

Salceda also said he was “nervous” about a particular section in the legislation that barred lower courts from stopping the fund’s investments, leaving that power only to the Supreme Court and the Court of Appeals.

“That’s nerve-racking,” he said. “It’s as if we are hiding something. There’s gossip going around that Marcos' wealth will be reinjected by participation in the Maharlika [Fund]. That’s the rumour,” he added.