The recently signed partnership between Maharlika Investment Corporation (MIC) and Thailand’s Charoen Pokphand (CP) Group Co. Ltd. is a welcome development in supporting one of the least invested sectors in the country, a Philippine economist said.
“Agriculture (is) one of the least invested sectors by both large local and foreign investors, so this is a welcome development, as an important part of national food security,” Michael Ricafort, RCBC chief economist, told Malaya Business Insight via Viber on Monday.
Ricafort was sought for comment on the signed memorandum of understanding between the Philippines’ sovereign wealth fund and the CP Group over the weekend.
The agreement is intended to accelerate investments in agriculture and food production, digital innovation, and sustainable energy in the Philippines.
MIC said a steering committee will drive the project selection, fund structuring, and investor engagement. The closing of the first capital call is expected in the next nine to 12 months.
The MOU was signed by MIC President and CEO Rafael D. Consing Jr. and CP Group Chairman Soopakij Chearavanont.
“This partnership will lay the groundwork for a multi-sectoral investment initiative that will drive long-term economic growth while reinforcing the Philippines’ position as a premier investment destination,” Consing said.
MIC and CP Group will establish a private equity fund, and raise up to $1 billion, MIC said in a statement sent to reporters also on Monday.
“The country needs agricultural FDIs (foreign direct investments) the most to facilitate technological transfer or adopting the best global agricultural technologies that further boost agricultural output and productivity in the country,” Ricafort said.
The sector employs more than 20 percent of the total workforce. Supporting agriculture would also help alleviate poverty, especially the people in the countryside or rural areas, the economist said.
“This would be consistent in further improving the country’s agricultural supplies, production and output by using the best global technologies available for further local adaptation” Ricafort said.
“And (this) would help reduce prices and overall inflation, as part of the important structural solutions for the country’s agricultural sector,” he added.
CP Group is one of Asia’s largest multinational conglomerates operating in more than 30 countries. Its businesses are focused on agriculture, food production and retail trade.
MIC is the Philippines’ sovereign wealth fund, mandated under Republic Act No. 11954 to generate sustainable long-term returns that support national economic priorities.
