SM raises budget to support 2024 expansion 

SM Investments Corp. (SMIC), the holding firm of the Sy family, said it is setting aside as much as P120 billion for its capital expenditures (capex) this year, 50 percent higher than the previous year’s P80 billion, according to a report by BusinessMirror.

Franklin Gomez, the company’s senior vice president for finance, said the capex excludes the banks and involves only its consolidated subsidiaries.

“The biggest driving force of that is SM Prime (Holdings Inc.); they’ve been public about their intention to spend P100 billion this year so they will be the biggest component of our capex,” Gomez said.

SMIC said it will continue to expand its presence nationwide as there are many areas in the country that have yet to benefit from access to modern retailing, formal financial services and integrated property developments.

“We will continue to invest in growth in the Philippines and we are committed to being a catalyst for responsible development. We have a young, dynamic, higher-earning population who will help support and drive economic activity,” SMIC President and CEO Frederic C. DyBuncio said.

“Our strategy is to continue to expand coverage nationwide to create new markets that improve access to these sectors.”

SM Prime is opening four new malls, one in Metro Manila and three in the provincial areas in 2024.

Its condominium unit SM Development Corp. is planning to roll out 8,000 to 10,000 residential units this year in the northern part of the Philippines and across Visayas and Mindanao.

SM Hotels is slated to officially launch its first Lanson Place property at the Mall of Asia.

Meanwhile, Alfamart—SM’s minimart grocery format—is set to expand its store network to 400 this year.

BDO Unibank Inc. will expand its coverage nationwide, with BDO and BDO Network Bank planning to increase branches by a combined 100 to 120 this year.

Following its acquisition of the Philippine Geothermal Production Co. (PGPC), SMIC said it is set to explore new steam fields in Northern and Southern Luzon with the aim to double the company’s current steam production of 300 megawatts within the medium-term.

For its contribution to renewable energy, the Board of Investments has awarded green lane certificates to PGPC geothermal projects Daklan Geothermal Power Project in Benguet, Mt. Labo Geothermal Power Project in Quezon, Camarines Norte and Camarines Sur, Mt. Malinao Geothermal Power Project in Camarines Sur and Albayand Baua-Sikaw Geothermal Power Project in Cagayan.

These projects are set to generate around 2,000 jobs during exploration and development, which will boost livelihood in each respective locality.

Projects are endorsed for green lane treatment if they are deemed of strategic importance, entitling them to expedited permit processing.

2Go Group Inc., meanwhile, remains on course in providing “seamless logistics solutions.” With the addition of its two new ships setting sail, 2Go will have 10 roll-on/roll-off passenger vessels and one freighter or a total of 11 ships in its fleet, serving 19 ports of call.

Airspeed, another SM-owned logistics company, is also keen on expanding its distribution facilities in key cities in Luzon, Visayas and Mindanao and will open more kiosks and collaborations with service providers to offer better customer options, wider network, and quicker delivery times.

“We expect our core businesses to continue its growth trajectory. Additionally, we anticipate that our portfolio investments will contribute significantly to our overall performance in the medium-term as these are well-positioned to capture opportunities in high growth sectors,” DyBuncio said.