China proposes military drills with PH ‘Malaysian businessmen express interest in Maharlika’

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KUALA LUMPUR – Several Malaysian businessmen have expressed interest in the Maharlika Investment Fund (MIF), President Marcos said on Thursday, July 27.

Marcos noted that Malaysian investors are the “most careful” given their experience with their own sovereign wealth fund, referring to the multibillion-dollar 1Malaysia Development Berhad (1MDB) financial scandal.

“Their experience here is not going to be a detriment. In fact, it is a way for them – they are the most careful of all – they will not invest if they see this will be similar to what happened here,” the President told Filipino journalists at a press conference at the EQ Hotel here.

“So, as long as you can assure them that what their poor experience here – the terrible things that happened here – will not happen with our fund,” he said.

The President said he reassured Malaysian business leaders that Maharlika would be free from “undue political influence.”

“If you remember I am consistently saying it is going to be run professionally and without undue political influence. Of course, the government has an interest in the fund so we have a representative on the board, but on the day-to-day decisions as to what investments would be made it is left to those financial managers that we will be putting into place,” he said.

“With that assurance, I think the assumption is that everyone has learned the lessons from what happened with one of their own sovereign funds – will do everything they can to avoid falling into the same situation,” the President added.

The 1MDB scandal was a large-scale corruption and money laundering conspiracy in 2015 that involved then-prime minister Najib Razak transferring over 2.67-billion Malaysian ringgit from Malaysia’s sovereign wealth fund to his personal bank accounts.

Marcos signed on July 18 the Maharlika Investment Fund Act of 2023. It is expected to have at least P75 billion in paid-up capital this year, with P50 billion sourced from Land Bank of the Philippines and P25 billion from Development Bank of the Philippines (DBP).

The Fund will be invested in a wide range of assets, including foreign currencies, fixedincome instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate and high-impact infrastructure projects, and projects related to sustainable development. n

China has proposed to hold joint military exercises with the Philippines, Armed Forces of the Philippines chief Gen. Romeo Brawner Jr. said on Thursday, July 27, in an apparent effort to convey its friendship with its smaller neighbor amid tensions in the West Philippine Sea.

The offer was put forward by Chinese Ambassador Huang Xilian during the 96th People’s Liberation Army (PLA) anniversary celebration in Mandaluyong City on Wednesday night.

“There were no details yet. They just said, ‘Let’s do something together,’” Brawner told the Inquirer. The informal proposal has yet to be studied, he added.

The military ties between the two countries go a long way, said Brawner in his remarks as guest of honor at the event. He said the strong military relations were on full display when the PLA provided sniper rifles and ammunition that were used “intensively” during the Marawi siege, a five-month battle between government troops and Islamic State-linked militants in 2017; donated various engineering equipment that has been used for developmental efforts nationwide; and donated the first vaccines for front-liners during the COVID-19 pandemic. In addition, the AFP also sends military officers to China for training and education. “We will continue to send our officers to China if you continue to invite us,” he said.

The celebration at the fivestar luxury hotel struck a stark contrast to often tense encounters between the two parties at sea, where Chinese vessels are known to harass Philippine ships and encroach the country’s waters.

Beijing has militarized and continues to occupy parts of the South China Sea, including the West Philippine Sea, or the waters within the country’s 370-kilometer exclusive economic zone.

Chinese coast guard or navy vessels routinely block or shadow Philippine ships carrying out supply missions to islands in the disputed sea that host Philippine garrisons.

‘Steady progress’

However, the Chinese ambassador, in his remarks, said the PLA has been “a staunch force safeguarding world peace.” “The PLA is a peaceloving and peace-preserving army. The development and growth of the PLA is tantamount to development and growth of the forces of peace in the world,” he said.

Huang said the relations between the two militaries have made “steady progress” under the strategic guidance of President Marcos and Chinese President Xi Jinping.

“China is willing to work with the Philippines to adhere to independence and good neighborliness, deepen practical cooperation in various fields, properly manage differences through consultation and dialogue, and ensure ChinaPhilippines relations remain healthy and move steadily into the future,” he said. n

THE “new Philippines” or Bagong Pilipinas is here, President Marcos said at the conclusion of his State of the Nation Address on Monday, July 24. As he had promised, his second SONA was a performance report on the “successes and challenges” in his first year in office.

It was a year during which the nation received a boost from the improvement in the COVID health situation, which allowed the lifting of pandemic restrictions and paved the way for a revival of the global economy. On the other hand, Russia’s invasion of Ukraine seriously disrupted global supply chains and caused fuel prices to surge, driving inflation that was worse than during the pandemic.