FACT CHECK: Maharlika fund law doesn’t prohibit PH government borrowing

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A video falsely suggests that the law establishing the Maharlika Investment Fund — signed by Marcos in July 2023 — eliminates the Philippines’ need to stop taking out loans

Claim: The administration of President Ferdinand Marcos Jr. has enacted a law prohibiting the Philippine government from borrowing money from domestic or foreign sources.

Rating: FALSE

Why we fact-checked this: The TikTok video containing the claim has 60,400 views, 3,722 likes, 334 shares, and 598 comments as of writing.

Text in the video states: “Batas na hindi na kailangan mangutang ng Pilipinas, pinatupad ni PBBM.” 

(A law stipulating that the Philippines no longer needs to borrow money has been implemented by [President Bongbong Marcos].)

Additional text below it reads: “Kung sakali na si Sara ang susunod na president, baka mangutang ka pa at ilubog mo na naman sa utang ang Pilipinas tulad ng tatay mo kahit may batas na na bawal.”

(If [Vice President] Sara [Duterte] becomes the next president, she might borrow money again and plunge the Philippines back into debt just like what her father did, despite a law that prohibits it.)

The facts: No law has been passed that would eliminate the Philippines’ need to borrow money or prevent the government from borrowing domestically or from foreign sources.

The TikTok video shows a news report about the signing of the law creating the Maharlika Investment Fund (MIF) in July 2023. In his speech during the signing, the President said the MIF is “designed to drive economic development,” and will enable the government to invest in projects without “taking on additional borrowings.” Contrary to the claim, however, Marcos did not say that the Philippine government is now barred from taking on debt or that the country will no longer need to borrow money from other funding sources.

Outstanding debt: The Philippines’ sovereign debt continues to grow. According to IBON Foundation, the country’s outstanding debt ballooned by 30% from June 2022 to February 2025, with the average monthly increase in debt under Marcos’ administration exceeding that of previous administrations, including those of Gloria Macapagal Arroyo, Benigno Aquino III, and Rodrigo Duterte.

As of end-February, the national government’s outstanding debt stood at P16.63 trillion, an increase of 1.96% from P16.31 trillion in January 2025. 

Maharlika Investment Fund: The MIF is the Philippines’ first sovereign wealth fund, created under the Marcos administration to finance large-scale infrastructure and development projects. Established through Republic Act No. 11954, the MIF’s initial start-up capital pools P125 billion from government banks and the national government, with possible future funding from central bank dividends and state-owned enterprises. (READ: FAST FACTS: What is the Maharlika Investment Fund?)

The MIF has drawn controversy, with proponents of the wealth fund arguing that the MIF will reduce reliance on the national budget and public borrowing by investing in critical projects like dams, power grids, and broadband infrastructure. Senator Mark Villar earlier estimated that the MIF could yield returns of around 8.6%.

However, critics warned that launching the fund amid high national debt could intensify fiscal vulnerabilities and divert public resources away from more urgent social needs. They also raised concerns about governance, citing the Philippines’ troubled history with fund mismanagement and corruption. (READ: EXPLAINER: Will a sovereign wealth fund work for the Philippines?) 

In January 2025, the Maharlika Investment Corporation (MIC), the governing body of the fund, made its first investment by acquiring a 20% stake in the National Grid Corporation of the Philippines. In February, Business World reported that the MIC is eyeing a third investment with a foreign-listed company. 

Rappler has published several fact-checks on the MIF:

• FACT CHECK: PH debt not erased by creation of Maharlika fund
• FACT CHECK: Maharlika fund won’t draw from ‘Marcos wealth’
• FACT CHECK: No mention of ending foreign loans in Marcos’ Maharlika speech
• FACT CHECK: No mention of Maharlika fund in Marcos’ last will

– Marjuice Destinado/Rappler.com

Marjuice Destinado is a Rappler intern. She is also a fact-checker and researcher-writer at Explained PH. A third-year political science student at Cebu Normal University (CNU), she serves as the feature editor of Ang Suga, CNU’s official student publication.