The SM Group is heading into 2025 with cautious optimism, driven by the continued growth of the economy despite ongoing challenges such as peso volatility and inflation.

A day after Christmas, Frederic C. DyBuncio, president and CEO of SM Investments, said in an e-mailed statement that the company will bank on the strong growth of the business sector despite economic challenges to sustain its momentum.

He pointed to consistent demand as a key factor sustaining household spending. According to data from the Philippine Statistics Authority, Household Final Consumption Expenditure (HFCE) posted a year-on-year growth of 5.1 percent in the third quarter, maintaining the same level as the previous year.

“Any moderation in inflation should trigger a strong confidence rebound. This could create opportunities in consumer-focused sectors in the country, and we are poised to cater to these evolving demands,” DyBuncio said.

To address the growing demand, SM continues its expansion into underserved areas, playing a key role in driving sustainable economic development.

The company is working closely with government stakeholders to enhance access to modern retail, financial services and integrated property developments nationwide.

“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 explained.

Beyond retail, SM has also been investing in renewable energy and logistics as part of its long-term strategy.

Promising ventures

Meanwhile, DyBuncio said SM continues to invest in promising ventures, such as renewable energy and logistics, that foster economic activity.

SM has invested in the clean energy industry through the Philippine Geothermal Production Company which produces 300 megawatts of geothermal steam supply.

On the other hand, he said SM aims to continue to develop geothermal concessions through PGPC in support of the Department of Energy’s goal of reaching 50 percent renewable energy supply by 2040.

To encourage circularity towards green energy production, SM’s property arm, SM Prime Holdings partnered with GUUN Co. Ltd. (GUNN) to implement the Japanese technique of reducing landfill impact.

‘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.’

The technology converts non-recyclable and hard-to-recycle packaging into alternative fuel.

To attain this, SM’s banking arm, BDO Unibank, is one of the largest funders of renewable energy projects, funding P898 billion in sustainable finance, including loans to 59 renewable energy projects as of December 2023.

In logistics and tourism, the improvement of transport networks across the country’s archipelago connects tourist and industrial areas that will help create inclusive growth.

SM, through its subsidiary 2GO, launched MV Masigla and MV Masikap in 2024 to help better connect goods to 19 ports across the country including Iloilo, Bacolod, Cagayan de Oro and Manila, further supporting the government’s push for medium-term growth through an upgraded tourism infrastructure and ecosystem.

“Our focus for 2025 will be to drive purposeful growth, empowering communities and partners through our investments towards a sustainable future,” according to DyBuncio.