Singapore’s Temasek eyes investment in Maharlika fund

MANILA, Philippines — Temasek Holdings Ltd., the nearly five-decade-old sovereign wealth fund of Singapore, has reportedly expressed interest in investing in the proposed Maharlika Investment Fund (MIF), the Philippines’ own version still being deliberated by lawmakers.

Department of Budget and Management Secretary Amenah Pangandaman yesterday met with Temasek officials led by international relations managing director Eu Jin Chua, institutional director Adrian Chung and associate director for investments Allan Cabrera.

Pangandaman said the meeting provided Temasek’s inputs on how to effectively manage and operate the wealth fund given that the Philippines is just starting to come up with its own.

Asked whether Temasek would be on board once the MIF is established, Pangandaman said Singapore’s wealth fund has expressed interest.

“They are looking at Southeast Asia for their future investments including the Philippines, of course. So we are trying to pitch,” Pangandaman told The STAR.

“They are interested in investing in the Philippines,” she said.

Founded in 1974, Temasek is a global investment company in Singapore with over $300 billion in portfolio value and is considered among the world’s most successful sovereign wealth funds.

Temasek’s portfolio spans across financial services, transportation and industrials, telecommunications, media and technology, consumer and real estate, as well as life sciences and agriculture and food.

Pangandaman said Temasek emphasized that it took decades of hard work over the years to establish such a wealth fund.

“They also shared that one of the keys to their success is the clear purpose of the fund. They are an investment, not a development fund, and this will determine the target capital and returns for their investments,” Pangandaman said.

Temasek likewise highlighted that it has board directors from all over the world. For one, tycoon Jaime Augusto Zobel de Ayala has been in Temasek’s board since last year.

“We will also have to do our own headhunting for worthy and credible board directors who will work independently and focus on investments rather than policy,” Pangandaman said.

She said the government hopes to make the MIF part of the International Forum of Sovereign Wealth Funds (IFSWF) to gain the support of other economies.

The IFSWF is a voluntary organization of wealth funds committed to working together and strengthening the community through dialogue, research and self-assessment and promoting a deeper understanding of sovereign wealth fund activity.

“Many have common objectives such as green investments, development, which align with our own goals in the Philippine Development Plan,” Pangandaman said.

Overall, Pangandaman maintained that the meeting with Temasek was “very encouraging,” and that the Philippines has a lot of catching up to do.

She said the Temasek model shows that with proper safeguards in place, clear objectives, and well thought-out policies and procedures that will allow managers to invest well, a sovereign wealth fund can fuel economic growth.

“Some of these are already incorporated in the Senate committee report. I think we are ready and we are convinced that having a sovereign wealth fund now can really help us achieve our economic targets,” Pangandaman said.