ILOILO CITY – The Modified Pag-IBIG 2 (MP2) savings program is being hailed as an excellent investment opportunity for Ilonggos seeking to enhance their savings. This initiative, backed by the government, offers a secure and tax-free investment option, as highlighted by Lawyer Stanley Alayon, head of the Pag-IBIG Fund Iloilo Molo Branch, during a recent discussion at the Kapihan sa Bagong Pilipinas.
Alayon emphasized the affordability of the program, which requires a minimum investment of PHP500 and spans five years. A significant advantage of the MP2 program is its higher dividend rate, which last year stood at 7.05 percent, surpassing the 6.55 percent rate of the regular Pag-IBIG savings. The dividend rate is subject to annual adjustments based on corporate performance.
Despite its benefits, only a small fraction, between 10 to 15 percent, of Pag-IBIG members in Western Visayas are currently utilizing the MP2 program. Alayon noted that even large corporations are tapping into this scheme, with investments exceeding PHP10 million. However, the program primarily targets the middle class, with a cap set at PHP10 million to ensure that middle-income earners can benefit from the returns.
From July 2022 to September 2024, investments in the MP2 program in Western Visayas have amounted to over PHP2.1 billion. The program is also accessible to pensioners who were previously Pag-IBIG members. In comparison, the regular savings program has generated more than PHP4.5 billion during the same period.