In a statement on Thursday, Dec. 26, 2024, the conglomerate highlighted its plans to capitalize on this favorable outlook by focusing on consumer-driven and sustainable investments.
Management's view
“Any moderation in inflation should trigger a strong confidence rebound,” SM Investments president and CEO Frederic DyBuncio said. “This could create opportunities in consumer-focused sectors in the country, and we are poised to cater to these evolving demands.”
So far, the Philippine economy has shown resilience despite global economic uncertainties and inflationary pressures.
The Philippine Statistics Authority reported a 5.1-percent year-on-year increase in household final consumption expenditure for the third quarter, underscoring the continued strength of domestic demand. This steady performance forms the foundation for SM Investment’s cautiously optimistic outlook.
To address the anticipated growth in consumer confidence, SM Investments is accelerating its expansion into underserved areas across the country. By enhancing access to retail, financial services, and property developments, the company aims to drive inclusive growth while contributing to the country’s economic recovery.
“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,” DyBuncio said.
Investing in renewable energy
The company is also prioritizing investments in renewable energy and logistics — key sectors for long-term economic development. Through its subsidiary Philippine Geothermal Production Co. (PGPC), SM Investments has committed to increasing renewable energy capacity.
PGPC currently produces 300 megawatts of geothermal steam supply, contributing to the government’s goal of achieving a 50-percent renewable energy share by 2040.
In addition, SM Investments’ banking arm, BDO Unibank, has emerged as one of the largest funders of renewable energy projects in the Philippines. As of December 2023, BDO had financed P898 billion in sustainable projects, including loans to 59 renewable energy initiatives.
Investing in logistics
Logistics is another area of focus for SM Investments. Its subsidiary, 2GO Group, recently launched two vessels — MV Masigla and MV Masikap — to improve connectivity across the archipelago. These efforts align with the government’s push to upgrade the country’s tourism infrastructure and create inclusive economic growth through better transport networks.
Improvement in logistics and infrastructure strengthens the link between industrial and tourist areas, providing growth opportunities for various sectors, DyBuncio explained.
Meeting challenges
Despite challenges such as peso volatility and global uncertainties, SM Investments believes that lower inflation will not only benefit consumers but also foster an enabling environment for businesses to innovate and expand. The group’s confidence is bolstered by what it described as the adaptability of the Philippine economy and its vibrant consumer base.
“Our focus for 2025 will be to drive purposeful growth, empowering communities and partners through our investments towards a sustainable future,” DyBuncio added.
SM Investments explained that its strategy to align its investments with emerging economic opportunities positions it to play a key role in the country’s continued recovery and development.
