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Amy Sood

Maharlika, the Philippines’ first sovereign wealth fund, is open to “collaboration” with China in development projects despite ongoing maritime disputes, its chief said.
“I personally think that there is not enough collaboration going on in respect of Maharlika and [mainland] China and Hong Kong … intuitively, this is perhaps because of the reluctance arising from geopolitics,” Rafael Consing Jnr, president and CEO of the fund, said.
Consing made the comments on the sidelines of the Hong Kong-Asean Summit 2024 organised by the South China Morning Post in partnership with the Hong Kong-Asean Foundation and the Our Hong Kong Foundation.
Tensions between Manila and Beijing have escalated due to overlapping claims in the disputed South China Sea, leading to recent clashes in the contested waters.
China claims almost the entirety of the South China Sea, including parts claimed by the Philippines, Brunei, Malaysia and Vietnam.


Consing emphasised that the relationship between the Philippines and China should be viewed as multifaceted and not solely based on individual conflicts.
“I really believe that there is a wider breadth of opportunities for us to be able to collaborate, and hopefully by doing so, mitigate the geopolitics of it,” he said.
Launched in July last year, the Maharlika Investment Fund (MIF) is the Philippines’ first sovereign wealth fund, aimed at financing major infrastructure projects, boosting development, and addressing endemic poverty in the Southeast Asian nation.
After initially facing delays, Consing announced in July this year that the fund has signed several memorandums of agreements to support energy security projects and is prioritising energy initiatives, exploring opportunities in broadband, healthcare, and green mining. He also expressed an openness to collaborating with China and learning from its expertise.
“We’re very open to doing business with [China],” he said. “And in fact, we look forward to whatever it is that they can contribute, because I’ve no doubt got so much to learn from them.”

Speaking on the Philippines’ stance on the tense relations between China and the US, Consing said Manila is “pursuing an independent foreign policy”.
“We’re a country of about 117 million people, and we should be able to make decisions which we feel serve the interests of the country.”
“Whether that value comes from the United States, China, or any other country, we will take advantage of it,” he added.
Consing, a former investment banker, was appointed president and CEO of the Maharlika Investment Corporation (MIC) in November. The MIC – which has an authorised capital of US$8.9 billion – manages the Maharlika fund.

Critics of the fund, including former Philippine central bank chief Felipe Medalla, have warned that if it is not governed properly, it could become like Malaysia’s scandal-tainted state investment fund, 1Malaysia Development Berhad (1MDB).
1MDB was set up to finance development projects in Malaysia but was accused of misappropriating at least US$4.5 billion dollars in public funds, ensnaring the country’s former prime minister Najib Razak as well as financial institutions like Goldman Sachs.
The Philippines’ own history of corruption has led to significant delays in launching the Maharlika fund due to sharp criticisms from civil society groups, particularly under President Ferdinand Marcos Jnr’s administration given his family has long-been accused of kleptocracy. Notably, his father, Ferdinand Marcos Snr, was a dictator ousted in 1986 amid allegations he plundered roughly US$10 billion from the country’s coffers.
However, Consing remains optimistic that, drawing from his experience in the private sector, he has implemented the necessary measures to avoid the same pitfalls of 1MDB.
“I’ve read about [1MDB] and researched it to make sure this does not happen to us,” he said.


“We want to ensure that we are putting structures in place to address these concerns,” Consing said, highlighting an investment policy and risk management framework established in July, along with the appointment of watchdogs to oversee its financial, corporate, investment, and HR committees.
But challenges persist. Consing said MIF is “100 per cent debt funded”, drawing on funds from state-owned banks and government entities.
“These contributions could have been used to reduce our debt, but instead it was used to seed us,” Consing said, noting that this informed discussions with his board and with investors on how the MIF will be used.
“We looked at the GDP, we looked at where the gaps are in the economy, and we have decided in the board that during its nascent stage, we will steer this as a National Development Fund.”


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The Philippines

Philippines sovereign wealth fund seeks Beijing collaboration despite South China Sea disputes

The fund’s CEO, Rafael Consing Jnr, believes the Philippines’ relationship with China should be viewed beyond the lens of any individual conflict and that there are wider opportunities for collaboration. Photo: Eugene Lee

From left: Rafael Consing, Maharlika Investment Corporation’s President & CEO; Christine Ip, UOB’s Chief Executive Officer for Greater China, at The Hong Kong – Asean Summit 2024, on September 13. Photo: Eugene Lee

People hold signs during a protest at Mendiola in Manila on July 18, 2023 to condemn the passing into law of the Mahalika sovereign wealth fund. Photo: AFP

South China Sea: Philippines urged to explore gas reserves, or risk losing them to Beijing

The Philippines faces a critical decision: exploit its vast natural gas reserves in the Reed Bank, a potential flashpoint with China, or risk losing them to Beijing. Photo: Shutterstock

The Philippines is considering expanding its gas exploration near the disputed Spratly Islands in the South China Sea. Photo: AFP

South China Sea: Philippines logs record 203 Chinese vessels near its shores in 1 week

Chinese maritime militia vessels seen near Second Thomas Shoal in the South China Sea earlier this year. Photo: Reuters

Philippine coastguard personnel inspect damage on the BRP Teresa Magbanua after a collision with a Chinese coastguard ship near Sabina Shoal on August 31. Photo: Philippine Coast Guard/AFP

Philippine coastguard divers and marine scientists survey part of Sabina Shoal in the South China Sea in June. Photo: Philippine Coast Guard/AFP

South China Sea: Manila urged to form smaller defence pacts as Asean negotiations stall

Philippine Coast Guard personnel wave flags as a Vietnam Coast Guard patrol ship makes a port call at the Port of Manila on August 5. Photo: EPA-EFE

Chinese coastguard vessels fire water cannons towards a Philippine vessel on its way to a resupply mission at Second Thomas Shoal on March 5. Photo: Reuters

Filipino coastguard personnel aboard a rubber boat prepare to disembark from a Philippine Coast Guard patrol ship during a joint maritime exercise with their Vietnamese counterparts on August 9. Photo: EPA-EFE

South China Sea: Malaysia shadows Chinese research ship, asserting energy rights

An oil platform operated by Petronas off the coast of Malaysia. Photo: Petronas Malaysia / Handout via AFP

Malaysian Prime Minister Anwar Ibrahim waves the national flag in Putrajaya last month. Photo: AP

Chinese coastguard and naval ships are pictured from a Philippine coastguard vessel near a disputed South China Sea shoal last month. Photo: AFP

South China Sea: Philippines ‘will not allow’ Beijing to remove vessels

A frame grab from handout video footage shows a Chinese coastguard ship (left) colliding with Philippine Coast Guard ship BRP Teresa Magbanua near the Sabina Shoal in disputed waters of the South China Sea on August 31. Photo: Philippine Coast Guard/AFP

The BRP Sierra Madre serves as a Philippine outpost at Second Thomas Shoal in the South China Sea. Photo: Reuters

Philippine Coast Guard personnel inspecting damage on board the BRP Teresa Magbanua after a collision with a Chinese coastguard ship near Sabina Shoal on August 31. Photo: Philippine Coast Guard/AFP

US Indo-Pacific Command Commander Admiral Samuel Paparo (left) and Philippine military chief General Romeo Brawner Jnr after a meeting in Baguio, northern Philippines, on August 29. Photo: AP

This Week in Asia

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Southeast Asia

The fund’s CEO, Rafael Consing Jnr, believes the Philippines should leverage opportunities from China, despite maritime disputes


The fund’s CEO, Rafael Consing Jnr, believes the Philippines should leverage opportunities from China, despite maritime disputes.


Sovereign wealth fund

Banking & finance

South China Sea

China-Philippines relations