SM bullish on Philippines economic growth

SM Investments Corp., the country’s largest mall operator and one of the Philippines' leading conglomerates, has expressed confidence in the nation’s growth prospects this year, aligning its investments with the country's consumption-driven economy.

Erwin Pato, executive vice president for Treasury, Finance, and Planning of SM Investments, said the group’s diversified portfolio in retail, property, and financial services positions it to benefit from the Philippine economy’s 70 percent consumption-driven structure.

“Our offerings in retail, integrated property development, and financial services will continue to be key players in this consumption-driven growth,” Pato said.

SM Prime Holdings Inc., the property arm of the group, has allocated PHP100 billion this year for the construction of new malls, residential projects, offices, hotels, and convention centers, anticipating steady growth in consumer demand and corporate activity.

Pato also highlighted the group’s ongoing PHP60-billion share buyback program, demonstrating management’s strong belief in the company's long-term value. “We're having this buyback because we believe in our company and its growth potential,” he added.

He noted that easing interest rates and inflation staying within the government's target range will further strengthen the country’s macroeconomic fundamentals, supporting consumer confidence and spending.

In 2024, SM Investments reported a 7 percent increase in consolidated net income, reaching PHP82.6 billion from PHP77 billion in the previous year, underscoring the group’s resilience and continued growth momentum.