SM Investments confident in Phl economic growth

SM Investments Corp., the country’s largest mall operator, remains optimistic about the Philippines’ economic growth this year, reaffirming its commitment to expanding its retail, property, and financial services sectors.

Erwin Pato, SM Investments’ Executive Vice President for Treasury, Finance, and Planning, emphasized that the Philippine economy’s consumption-driven nature aligns well with the company’s core businesses.

With 70% of the country’s gross domestic product (GDP) driven by consumption, Pato highlighted that SM’s investments in retail, integrated property development, and financial services will continue playing a crucial role in fueling economic growth.

To support this expansion, SM Prime Holdings, the group’s property arm, has set a P100-billion capital expenditure plan for 2025.

The budget will be used to develop new malls, residential projects, offices, hotels, and convention centers to meet the growing consumer and corporate demand.

Reflecting its confidence in long-term growth, SM Investments has also launched a P60-billion share buyback program, signaling its belief in the company’s strong market value and future potential.

Pato noted that macroeconomic factors such as easing interest rates and inflation remaining within the government’s target range would provide a favorable backdrop for continued expansion, reinforcing the company’s positive outlook.

In 2024, SM Investments posted a consolidated net income of P82.6 billion, marking a 7% increase from P77 billion the previous year.