Strengthening Institutional Development through International Collaboration
In a significant stride towards improving its governance practices, the Maharlika Investment Corporation (MIC) of the Philippines has entered into a partnership with Morocco’s Ithmar Capital. This collaboration, formalized through a memorandum of understanding signed on July 28, marks a strategic move by MIC as it seeks to elevate its status from an associate to a regular member of the International Forum of Sovereign Wealth Funds (IFSWF). The IFSWF is a prominent global organization dedicated to promoting governance standards among sovereign wealth funds, and MIC’s engagement in this partnership is poised to enhance its institutional frameworks significantly.
The peer learning partnership between MIC and Ithmar Capital aims to focus on institutional development, operational benchmarking, and the exchange of best practices. To ensure the efficacy of this collaboration, a steering committee will be established, comprising representatives from both sovereign wealth funds. This committee will oversee a comprehensive 12-month benchmarking plan designed to foster mutual capacity building—a key objective in aligning with the Santiago Principles, which outline internationally recognized standards for governance, accountability, transparency, investment, and risk management.
Future Prospects and Membership Aspirations
Rafael Consing Jr., president and CEO of MIC, expressed enthusiasm for the partnership, emphasizing the importance of transparency, strong governance, and excellence in the corporation's operations. Consing noted that this collaboration builds upon MIC's existing institutional strengths and reinforces its commitment to high governance standards. The partnership is instrumental in preparing MIC for its application to achieve regular membership in the IFSWF by 2027, following the completion of its three-year associate membership period, which began on July 11, 2024. During this time, MIC has gained access to valuable international networking opportunities and peer-learning experiences essential for its growth and development.
To qualify for regular membership, MIC must undergo a rigorous “360-degree audit” that evaluates its adherence to all 24 Santiago Principles. This audit is crucial for ensuring that MIC meets the necessary benchmark for governance practices expected of full members. Currently, the IFSWF comprises 38 full members and eight associate members, including the Philippines, highlighting the significance of this goal for MIC’s future. As the partnership with Ithmar Capital unfolds, it is expected to play a pivotal role in helping MIC achieve its aspirations for enhanced governance and operational excellence.
As reported by business.inquirer.net.
