Monday, December 5, 2022

Maharlika Fund - Good or Bad?

The idea is good but the timing is not. Investing is always nice but to do it at time of crisis is suspect.

The main purpose of a sovereign fund is to invest "extra" cash which is a prevalent practice in Middle Eastern countries looking to diversity their portfolio aside from oil and gas. 

The country is drowning in debt, can't balance its sheets, high inflation, etc and now it plans to invest most of the savings of the Filipino workforce, which I am not sure if even it's legal. 

The Filipino people needs to be careful especially with what happened to neighboring Malaysia's sovereign fund. Mahathir had to unretire to challenge Razak's political dominance, which allowed him to be convicted. 

In an era of confidential funds, this idea of Maharlika Sovereign Fund could be another legal way to siphon money. 



0 comments:

Post a Comment