AND so it came to pass that bright boys in the administration have proposed a wealth fund — unsurprisingly called “Maharlika” — to become an investment vehicle the way Singapore has Temasek, a global investment operation with over $400 billion in assets. Temasek is the holding company of the Singapore government and it invests its funds all over the world — including in some listed companies in the Philippines.
In July of this year, when I joined NAC President and CEO Dennis Zamora in a no-deal roadshow in Singapore, Temasek was one of those that sent fund managers to hear out what we had to say.
During the presidential campaign this year, I had suggested to some people close to the different campaigns that it was high time we had our own version of Temasek. Not surprisingly, it wasn’t a new idea — it seems that even former senator Bam Aquino had the same thought when he was still in the Senate. The idea of a government investing arm isn’t only a Singapore idea anyway; some European nations have their own version. And why not? Invested properly, a sovereign fund can reap great dividends — and these can be used for national development programs and projects from health care to infrastructure to pension fund augmentation and the like.
‘So, the bottom line is, I am not averse to the idea of a Philippine Temasek. But like many I’d want to be assured that the men and women whom President Marcos will ask to run the fund will have no fingers on both hands.’
Of course, mismanaged, the sovereign fund can end up as one giant kitty into which sticky fingers can dip. Now, this being the Philippines with a history of fingers in public office that have never been amputated, it is understandable that many are wary of the idea.
Especially because the state pension funds — GSIS and SSS — are going to be the source of the initial funding.
My idea though wasn’t about involving the pension funds. What I told my friends we should do was to use public lands as the monetized assets of the sovereign fund. And imagine how that could be, in some ways, limitless — for as long as we can continue reclaiming.
Actually, I had the NAIA complex in mind, thinking that if and when – actually when – it was closed then the property could be the first major contribution to the fund.
Of course, the property could be sold and then the monetary value is what is contributed to the sovereign fund.
But will it work? The first hurdle, of course, is finding enough funding to make the venture worth it. Yes, we can start small — and the numbers being bandied about are small compared to Temasek — but a bigger fund will naturally mean bigger returns.
After funding, the second issue is the matter that gets some people all het up — do we have the trust and confidence in the men and women who will run the show? Temasek wouldn’t be what it is today if Singaporeans had sticky fingers. Across the border from Singapore, Malaysia had problems with a similar scheme under a previous government. Would we be like Malaysia, or Singapore?
So, the bottom line is, I am not averse to the idea of a Philippine Temasek. But like many I’d want to be assured that the men and women whom President Marcos will ask to run the fund will have no fingers on both hands.
You know what I mean.
