Philippine President Ferdinand Marcos Jr. has enacted a measure creating what will be the nation’s first-ever sovereign wealth fund envisioned to help further boost one of Asia’s fastest-growing economies.

To its advocates, the Maharlika Investment Fund is a “vehicle for growth” by channeling funds from state banks and government-owned corporations into investments and infrastructure spending. To its critics, the fund that’s being set up amid moderating growth, wider budget deficit and a shaky global outlook only spells more risks.

Read More: Marcos Signs Philippines’ Wealth Fund Bill Into Law

Some academics and analysts question its goal, timing and potential impact on public coffers. They also flagged threats of political interference and corruption, despite assurances from Cabinet officials that the fund has ample safeguards.

Marcos himself allayed fears that the wealth fund will be used for political and personal gain. “Did you really think we’re going to use these funds to buy luxury cars and huge yachts? It makes me laugh because it’s so far from the truth,” he said in a speech after signing the law.

Here are key things to watch in the coming months as the Southeast Asian nation establishes the investment fund, based on the measure approved by Congress:

Governance

A corporate body called the Maharlika Investment Corp. will manage the fund. The finance secretary will serve as an ex-officio chairperson, while the fund’s chief executive officer will be picked by the president. Five other presidential appointees and the presidents of Land Bank of the Philippines and Development Bank of the Philippines will make up the rest of the nine-member board.

Marcos has assured that the fund will be managed professionally, adding that the key to its success is its management. He also said he will tap “good” money and financial managers for the fund.

The nation’s then central bank chief Felipe Medalla last year flagged the risk that the Maharlika fund could end up like Malaysia’s scandal-tainted state investment fund 1MDB if not governed properly, although he eventually backed the plan.

Funding

The Maharlika Investment Corp. has an authorized capital stock of 500 billion pesos ($9.2 billion), divided into five billion shares. Three-fourths of these will be common shares worth 375 billion pesos subscribed by the national government. The rest will be preferred shares available for subscription by the state agencies, corporations and financial institutions.

For the fund’s seed capital, Land Bank and Development Bank, both state-owned, will shell out 50 billion pesos and 25 billion pesos, respectively. The national government will provide another 50 billion pesos, and it may source its contribution to the wealth fund from privatization proceeds and the gaming agency’s income.

The Bangko Sentral ng Pilipinas will contribute all of its declared dividends to the wealth fund’s first two years. This may delay the central bank’s recapitalization, which is intended to further ensure price and financial stability, which is its mandate.

The central bank can “easily take” a postponement with its strong balance sheet, its then governor said in February. Expect the market to closely monitor if such a delay would have a meaningful impact.

Investments

Bonds issued by the Maharlika Investment Corp. won’t be guaranteed by the national government but will instead be secured by its own assets. These bonds will pay higher interest rates than state-issued treasury bills, translating to fatter yields for investors.

On the other hand, the funds including bond proceeds are intended to be invested in various assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate and infrastructure projects, Finance Secretary Benjamin Diokno has said. How the investments actually materialize can hasten or slow growth.

How the fund’s managers will carry out their long-term investment strategy and specific asset allocation are also worth watching.

Other wealth funds in the region show the risks of losses that some critics are wary about. Singapore’s state-owned investors Temasek Holdings Pte and GIC Pte are among the biggest contributors to their national budget. But earlier this month, Temasek reported its worst performance in seven years. The firm, with S$382 billion ($289 billion) in assets, posted a total shareholder return of -5.07% for the year ended March 31 mainly due to a slump in equity valuations.

Safeguards

The Philippines’ new law prohibits state companies providing social security and public health insurance from contributing to the fund’s capitalization, following public backlash against an initial plan to tap pension funds. These include state pension funds Social Security System and Government Service Insurance System, Philippine Health Insurance Corporation and Home Development Mutual Fund.

Some economists, including former central bank deputy governor Diwa Guinigundo, cautioned that workers’ retirement plans can still be at risk. He said that even if the money from pension funds will not be used as seed fund, if their boards approve it, they may still invest in the fund.

Marcos’s economic managers said the wealth fund will adhere to international safeguards, and will be subjected to internal, external and government audits.