Maharlika mulls investment in Agila satellite

MANILA, Philippines — Maharlika Investment Corp. (MIC) is keen on supporting the government’s plan to procure the Philippines its own satellite internet that would narrow the digital gap in the countryside.

MIC, the country’s wealth fund manager, may invest next in digital infrastructure, particularly in the management of a geostationary satellite that would solely serve the Philippines.

MIC president and CEO Rafael Consing Jr. said he wants to hear the proposal of the Department of Information and Communications Technology (DICT) to operate Agila, the country’s first sovereign satellite.

“The plan to operate the country’s first sovereign satellite is a particularly compelling initiative. This project aligns perfectly with Maharlika’s mandate to invest in critical infrastructure that can drive national development,” Consing told The STAR.

The DICT is talking to Starlink rival Astranis about the possibility of buying the bandwidth of geosatellite Agila, which was launched into space last year. The satellite is capable of reaching 10 million Filipinos in 30,000 barangays.

Information Undersecretary Paul Mercado said the DICT was at first reluctant to invest in Agila, as its bandwidth is too costly for an agency with a budget of a little over P10 billion.

Upon the appointment of Information Secretary Henry Aguda, the DICT engaged Astranis again to ask for a discount in the original price, and it was able to have it reduced by at least a third.

Now that the cost is trimmed, the DICT wants to tap MIC in financing the acquisition of bandwidth from Agila.

Mercado said buying the entire bandwidth of Agila would allow the DICT to beam internet anywhere in the Philippines. This would help the government in its efforts to bring connectivity to remote areas and expedite delivery of public services.

“When Astranis understood our issue, they said they could offer it to us cheaper. I don’t want to preempt this because we have yet to finalize the details, but we might involve Maharlika in this initiative,” Mercado told The STAR.

In response, Consing said the MIC is ready to support the DICT in this project, underscoring the urgency of connecting as many Filipinos as possible to the internet.

“We see digital infrastructure as a vital area for investment with the potential for significant and long-term returns for the nation, (so) we look forward to potentially engaging with the DICT on this further,” Consing said.

Based on data from the Philippine Statistics Authority, the country’s digital economy went up by eight percent to P2.25 trillion last year, from P2.09 trillion in 2023.

As a result, the sector expanded its share of the economy, measured as gross domestic product, to 8.5 percent. Further, it provided livelihood to 11.3 million Filipinos, accounting for 23 percent of total national employment.

The country’s digital economy was composed largely of digital-enabling infrastructure at P1.88 trillion. This was followed by e-commerce (13.5 percent), digital content and media (2.4 percent) and government services (0.3 percent).

With its trillion-peso impact to the economy, the DICT is aiming to grow internet penetration to 60 percent of households by 2028 as set in the Philippine Development Plan 2023-2028.

MIC, for its part, is still growing the fund’s portfolio of investments using its starting capital of P125 billion from state-run banks and government equity.

Currently, MIC’s investment book includes the 20-percent stake in the National Grid Corp. of the Philippines and the $76.4-million loan to Makilala Mining Co. Inc.