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Manila Times Business

Maharlika Fund not keen in AI investments

MAHARLIKA Investment Corp. (MIC) is not keen on directly investing in artificial intelligence (AI) companies, with its top official saying that the operator of the country’s sovereign wealth fund lacked the capital and expertise. “Are we investing in AI? ... the answer is no,” President and CEO Rafael Consing Jr. told reporters last week. “We’re not investing AI as a business. But what we’re going to do is, we are hoping that the investees would invest in AI t

Context & Analysis

The choice to keep artificial intelligence on the portfolio-company side of the balance sheet reflects how sovereign wealth funds usually operate. They are not venture studios chasing frontier technology; they are long-term capital vehicles expected to support national development goals while protecting public money. Direct AI investments often demand deep technical due diligence, rapid product cycles, and exposure to unproven business models. For a fund that must answer to the state, those risks can be hard to justify unless the project also delivers clear infrastructure, productivity, or resource-development benefits.

For Philippine businesses, the practical implication is more about adoption than ownership. If Maharlika investees embed AI in operations, local suppliers may benefit from digital procurement, automation, logistics analytics, predictive maintenance, and better customer service systems. That could be especially relevant for sectors where Philippine firms are competitive or strategically important: business process services, manufacturing, agriculture, tourism, retail, and financial services. Consumers may see faster transactions, lower costs, and improved access to services over time, although the benefits will depend on data governance, cybersecurity, workforce training, and whether productivity gains translate into wages rather than only margins.

The broader regulatory picture also matters. AI projects in the Philippines will not exist outside existing frameworks for data privacy, securities regulation, banking supervision, telecommunications licensing, and corporate governance. If state-backed capital expects investees to use AI responsibly, that may push companies to document algorithms, strengthen data controls, and align with Philippine digital-economy policy. What to watch next is whether the fund sets clear adoption criteria for portfolio companies, builds domestic technical capacity, or creates partnerships that let local startups participate without becoming direct sovereign bets. The message is not that AI is unimportant; it is that the fund may see more value in making investees smarter than in buying into the global AI arms race.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: manilatimes.net

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