THE MAHARLIKA INVESTMENT Fund, aka sovereign wealth fund, was originally designed to address capital limitations for infrastructure projects by providing access to foreign capital that would augment government’s resources.
Its capitalization– which became a public outrage– was originally to come from pension funds held by the Government Service Insurance System, Social Security System, savings from the Bangko Sentral ng Pilipinas and Philippine Amusement Gaming Corp. People vociferously demanded that pension funds not be used for such as it is their savings for the future.
In December 2022, a press release from Marcos’ economic team declared that the MIF as the sovereign wealth fund would be invested in a wide range of outlets like foreign currencies, fixed income instruments, domestic and foreign corporate bonds, commercial real estate and infrastructure projects among others.
As stated by the team, the sovereign wealth fund with P250 billion start up investments will be supplemented by annual contributions from BSP, the Department of Finance and other sources.
The team assured the people that MIF would not go the way of the failed 1Malaysia Development Berhad (1MdB) fund, which had a single signatory, because of the built-in checks and balances in MIF.
With the long time MIF corporation took to recruit what it called technical investment experts, who by the way are as highly-paid as Bangko Sentral staff and officials, a lot of its investment decisions in the 3-year old company seems to favor more the rich than the start-ups and infrastructure projects that badly need financial capital.
INVESTMENTS OR BAIL OUT?
Under the leadership of MIC president and chief executive officer Rafael Consing Jr., MIC had invested in Asian Terminals, National Grid Corp., Makilala Mining and bailing out foreign interests of the Emirates DP World, a country far wealthier than ours – which are highly-capitalized and better left in the hands and resources of foreign investors, rather than the struggling MIC.
Consing faced intense criticism for his plan to spend P2.9 to P8 billion to acquire a stake in Asian Terminals Inc.
Critics have argued that the move effectively bailed out Emirati-owned DP World and benefitting wealthy stakeholders including Marcos crony, Yosi Tanco, rather than funding new national infrastructure, Bilyonaryo reported.
MIC’s investment in ATI coincided with its voluntary delisting from the Philippine Stock Exchange, a process that has come under scrutiny for potentially-disadvantaged minority stakeholders. Opponents like urban planner Felino Palafox Jr. and various business groups questioned why a state sovereign fund is being used to buy into a mature, profitable private utility instead of pioneering greenfield projects.
SOVEREIGN STEWARDSHIP
Though MIC defended the move as “sovereign stewardship” of a strategic port asset, detractors view it as a misuse of public funds to favor politically-connected elites and foreign corporations, Bilyonaryo stated.
The deal, they said, reignited fears of Maharlika Fund’s lack of transparency with observers calling for closer investigation into the valuation of the tender offer and the strategic need for the buyout.
The MIF– created to boost the state’s earnings from publicly-accessed capital (state banks) to ensure economic growth, has been funding floundering firms of the rich to ensure a board seat for wealth fund officials while endangering people’s money.
As I wrote last December 19, the ATI investment is MIC’s third major investment in two years, after a ₱4.42 billion bridge loan to Makilala Mining Co. and a ₱19.7 billion investment in the National Grid Corporation of the Philippines, both privately-owned.
NOT FOR THE PEOPLE
Its investments in shaky businesses is in exchange for shares of stocks and board seats that would benefit the shareholders of such companies and those of the Maharlika Fund.
“This is not an investment for the people. This is a bailout for private corporations at the expense of taxpayers,” said Bagong Alyansang Makabayan (Bayan) as it urged Congress and the public to scrutinize MIC’s investment in ATI.
Bayan said the fixed-price tender offer mainly rewards the private owners while shifting risk to the public.
Once ATI is delisted, it will no longer be bound by Philippine Stock Exchange disclosure and governance requirements, making it easier to operate with less sunlight, Bayan said.
ATI SHAREHOLDERS
The biggest shareholders are: DP World Australia (POAL) Pty. Ltd., ATI Holdings, Inc., Pecard Group Holdings Inc., and the Philippine Seaport Inc, with significant stakes from entities like DP World and local groups though recent filings show firms like Thunder Fze and others. MIC plans to acquire a substantial stake of up to 11.2% of ATI, as reported in December 2025 for strategic investment.
ATI disclosures show MIC will launch a tender offer for 101.189 million shares, about 5.6% of the company, at ₱36 per share, or roughly ₱3.64 billion.
MIC’s target is about 200 million shares, around 11.1%, which would take the bill to as much as ₱8.4 billion, as it joins DP World, Tanco and other major holders in buying out the remaining public float.
“MIC will plunk in P3.6 billion in public funds in a private company in which it will have no controlling stake, no role in operations, nor guaranteed income at a time when the government is cutting back ayuda for the poor, it is giving money to the rich,” Bayan lamented.
MARCOS CRONY TANCO
DP World, through its Australian subsidiary, owns about 17.4% of ATI. DP World is a Dubai-based global ports and logistics group with about $20 billion in revenue and $49.7 billion in assets in 2024.
Tanco, who owns about 32.3% of ATI, is listed among the Filipino billionaires with an estimated net worth of $1.1 billion, buoyed by the surge of online gaming firm DigiPlus, where he serves as chairman.
Other major ATI shareholders are Pecard Group Holdings of (19%) and ATI Holdings (14.6%).
For critics, the question is simple. If ATI’s biggest owners have the cash and the clout, why is Maharlika being asked to show up with the people’s money.
ATI manages and operates the Manila South Harbor, the Manila Inland Clearance Depot, Port of Batangas, Batangas Supply Base, and Tanza Barge Terminal. It also owns 35.71 percent of South Cotabato Integrated Port Services Inc., which operates the Makar Wharf in General Santos City.
TROUBLING PATTERN
Bayan also pointed to what it called a “troubling pattern” in the fund’s early deals.
“From being touted as a vehicle for national development, the Maharlika Investment Fund is now exposed as a vehicle for subsidizing privatization, lining private pockets with public funds,” said the group.
Bayan questioned why billions of pesos are being channeled into private deals without clear guarantees of returns, especially as the government trims some social spending and poverty remains a major problem.
MIC responded by saying that the proposed stake in ATI reflects its focus on the “real economy,” noting that the port operator plays a central role in Philippine trade and logistics.
Of late, Consing said MIC would look at investing in agribusiness firms, especially those into export-oriented products, within the first semester of 2026. Still not even close to the list of sectors requiring urgent financial support from the government.
TARGETING AGRIBUSINESS
Consing announced that MIC hopes to close investment deals with agricultural companies with the prospective recipients of its funding possessing strong export and job-creation potential.
“Our goal is to back companies ready to scale — providing the resources to improve efficiency and increase export volume, which in turn secures and generates vital employment,” MIC said on Monday.
He added that the sovereign wealth fund, launched in 2023, is advancing into agriculture with a focus on “special situations” and deals with the potential to result in “strategic mergers and acquisitions.”
“The fund is targeting enterprises with strong export promise and a significant labor component, aiming to close deals within the first half of 2026,” it added.
The MIC also said it considers “promising agri-businesses” a key priority and seeks to unlock their full potential.
STRATEGIC PILLAR
In the Philippines, agricultural exports accounted for 11.7% of total exports in November, according to the Philippine Statistics Authority.
For the first 11 months, the agricultural trade deficit totaled $10.3 billion, narrowing about 4.6% from a year earlier. Agricultural exports at the end of November amounted to $8.33 billion.
Last year, the MIC announced a memorandum of understanding with Thai conglomerate Charoen Pokphand Group Co., Ltd.
The fund also agreed to establish a private equity fund to raise up to $1 billion for investments in agriculture and food production, digital innovation, and sustainable energy.
Agriculture is among the MIC’s four strategic pillars alongside energy, logistics, and mining.
“Beyond its contribution to national output — including the 5% GDP growth target — the (mining) sector serves as a long-term strategic hedge for MIC, helping preserve capital value against long-term currency volatility and global inflationary pressures,” it said.
In addition, the MIC said it will deploy a “sectoral and tactical” approach that will prioritize assets that address structural chokepoints and unlock export capacity.
“By marrying ‘intelligent capital’ with national imperatives, MIC will contribute to a more diversified and resilient Philippine economy,” Consing said.
The MIC posted income of P2.68 billion in 2024, up from P154.3 million a year earlier. It remitted P1.45 billion to the Treasury.