SM Approaches 2025 with Cautious Optimism

The SM Group is cautiously optimistic about the coming year, encouraged by the Philippine economy's continued growth.

Mr. Frederic C. DyBuncio, President and CEO of SM Investments, stated that despite ongoing challenges such as peso volatility and higher inflation, the business sector has adapted well.

Mr. Frederic C. DyBuncio, SM Investments President and Chief Executive Officer

Consistent demand supported household spending in the third quarter, with Household Final Consumption Expenditure rising 5.1% year on year, matching the level seen in the same quarter last year, according to data from the Philippine Statistics Authority.

“Any moderation in inflation should trigger a strong confidence rebound. This could create opportunities in consumer-focused sectors in the country and we are poised to cater to these evolving demands. By investing and expanding to more areas nationwide, SM creates new markets and improves access to these essential sectors, serving more communities and helping stimulate sustained economic activities. Our focus for 2025 will be to drive purposeful growth, empowering communities and partners through our investments towards a sustainable future.” ~Mr. Frederic C. DyBuncio, SM Investments President and Chief Executive Officer  

To meet rising demand, SM continues to expand into underserved areas, promoting long-term economic development and working with government stakeholders to improve access to modern retail, financial services, and integrated property developments.

Mr. DyBuncio also stated that SM continues to invest in promising ventures like renewable energy and logistics, which promote economic activity.

SM has invested in the clean energy industry through the Philippine Geothermal Production Company (PGPC), which generates 300 megawatts of geothermal steam supply. SM intends to continue developing geothermal concessions through PGPC in support of the Department of Energy's goal of achieving 50% renewable energy supply by 2040. 

To promote circularity in green energy production, SM's property arm, SM Prime Holdings, collaborated with GUUN Co. Ltd. (GUNN) will implement a Japanese technique for reducing landfill impact. The technology converts non-recyclable and difficult-to-recycle packaging into an alternative fuel.

BDO Unibank, SM's banking arm, is a major funder of renewable energy projects. BDO has invested PHP898 billion in sustainable finance, including loans for 59 renewable energy projects as of December 2023.  

In logistics and tourism, improved transportation networks across the country's archipelago connect tourist and industrial areas, promoting inclusive growth. SM's subsidiary 2GO launched MV Masigla and MV Masikap in 2024 to help better connect goods to 19 ports across the country, including Iloilo, Bacolod, Cagayan de Oro, and Manila, bolstering the government's push for medium-term growth through an upgraded tourism infrastructure and ecosystem.

About SM Investments Corporation

SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.

SM’s retail operations are the country’s largest and most diversified, consisting of grocery stores, department stores and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the fourth largest private domestic bank.

For more information, please visit www.sminvestments.com

For inquiries, please contact: smic_corpcomm@sminvestments.com