MANILA: The Philippines’ sovereign wealth fund says investing in physical assets like metals makes increasing sense against the backdrop of a war in Iran that’s playing havoc with the nation’s fuel market.
With money slowly losing its ability to buy things over time, Maharlika Investment Corp is interested in tangible assets that will better hold their value and provide investment gains that last, president and chief executive officer Rafael Consing Jr said in an interview on Wednesday.
The Philippines is seen by economists as one of Asia’s most vulnerable to inflation risks from higher energy costs considering it imports around 98% of its oil from the Middle East.
“Within the context of what is happening in the world where there is massive liquidity that’s being injected into the system, whether it’s Japan, China, or the United States, that will result into a long-term purchasing power debasement,” Consing said.
“The antidote to that is securing hard assets. Being able to buy not just gold, but to actually buy the company that makes gold.”
The wealth fund last year extended a US$76.4mil loan to Philippine gold and copper producer Makilala Mining Co, an affiliate of Australian miner Celsius Resources Ltd.
“This year, it’s looking at three to four deals worth as much as US$150mil each in sectors like energy, agriculture and mining,” Consing added.
“The year 2026 is about execution. We’re now looking at quite a number of investment opportunities.”
The just over two-year-old sovereign wealth fund has more than 75 billion pesos in investible funds, infused by state lenders Development Bank of the Philippines and Land Bank of the Philippines.
The national government has also committed to inject 50 billion pesos.
Maharlika was among the economic priorities of President Ferdinand Marcos Jr when it was created in 2023 as a “vehicle for growth” to spur what was one of Asia’s fastest-expanding economies.
It only made its first investment in January 2025, when it announced its acquisition of a 20% stake in the company which owns part of the Philippines’ power transmission operator that’s backed by China.
The 19.7-billion peso investment should be finalised in June after “differences in terms of the documentation” are ironed out, according to Consing.
“The first year and a half was really about foundation building, making sure we have the framework in place, our principles are embedded in our law.”
“Other projects it’s looking at include upgrading an electricity distribution loop to allow more firms to build power plants in Mindoro and Palawan provinces located in the main Luzon island,” Consing said.
“Finalising its investment plans this year should allow the company to generate returns above treasury bill rates.”
The Philippines isn’t the only country seeking to galvanise growth and investment through a sovereign wealth fund.
Indonesia has created Danantara, an ambitious effort to increase returns from state-owned assets and attract private sector money.
On Wednesday, Maharlika completed its purchase of an 11.2% stake in Asian Terminals Inc, the nation’s second-largest port operator, for 3.64 billion pesos.
Consing, a long time executive of global port company International Container Terminal Services Inc, believes the port sector is the “circulatory system of the Philippine economy.
“Today, we have successfully secured our place within that system.” — Bloomberg
