SM chair upbeat on retail giant’s resilience, notes cautious BSP path

Insider Spotlight

• SM leans on renewables and cost controls amid energy shock
• Tetangco sees consumption risks but not crisis-level stress
• BSP praised for managing expectations and signaling policy path
• Rate hikes not urgent unless inflation expectations worsen

SM Investments Corp. chair Amando Tetangco Jr. struck an upbeat tone on the retail conglomerate’s ability to weather rising energy costs, even as he acknowledged pressure on consumption and business operations in the Philippines.  

In an interview with CNBC International on Thursday, April 9, 2026, the former Bangko Sentral ng Pilipinas governor who now chairs the billionaire Sy family's holding firm, pointed to structural adjustments that are helping the conglomerate navigate volatility.

“We have adopted conservation measures. We’ve reduced mall hours by one to two hours per day,” he said, adding that SM has also expanded renewable capacity to about 100 megawatts.

More than 50 percent of SM malls’ energy requirements now come from renewables, insulating the group from fossil fuel price swings and supporting margins despite elevated costs.

The big picture

Tetangco signaled that while consumer sentiment may soften after recent shocks, the situation is manageable and far from past crises like the recent pandemic.

“We have seen similar situations in the past, like during the Covid pandemic,” he said, noting that SM has adapted by aligning pricing and offerings with shifting consumer demand.  

That adaptability, he implied, reinforces SM’s role as a bellwether for a consumption-driven economy that remains vulnerable to external shocks but fundamentally resilient.

Between the lines

On macroeconomic policy, Tetangco endorsed BSP’s current approach, emphasizing credibility and communication over aggressive action.

“As far as the BSP is concerned, they’ve been quite proactive in terms of managing inflation expectations,” he said, highlighting the central bank’s revised 2026 inflation forecast of 5.1 percent.

He stressed that guiding expectations is now a key transmission channel, reducing the need for abrupt moves.

What to watch

Interest rates remain the critical lever — but not an immediate one.

“This is not the time to raise interest rates, because [inflation] is basically supply driven,” Tetangco said, cautioning that tightening could unnecessarily dampen demand.

Still, he left the door open to action if risks escalate: “If second round effects start to emerge, then the BSP may not have choice but to adjust interest rates upward.”

Tetangco’s outlook blends cautious optimism on corporate resilience with a steady-hand view of monetary policy — signaling that while risks are rising, both SM and the BSP have room to maneuver. — Daxim L. Lucas | Ed: Corrie S. Narisma