SM Investments Corp. (SMIC) remains cautiously optimistic for 2025, buoyed by the continued resilience of the Philippine economy despite prevailing economic uncertainties. The conglomerate’s president and CEO, Frederic C. DyBuncio, expressed confidence in the sector’s ability to adapt to ongoing challenges such as peso-dollar volatility and persistent inflation.
“We are encouraged by the steady growth in household consumption, which rose 5.1% year-on-year, signaling healthy economic activity,” DyBuncio said, referencing data from the Philippine Statistics Authority. He noted that while inflation has been a concern, any signs of moderation could foster a significant rebound in consumer confidence, unlocking fresh opportunities across consumer-driven sectors.
Looking ahead to 2025, DyBuncio emphasized that SM’s strategy will focus on “purposeful growth” and sustainable investments that empower communities. “Our goal is to continue to expand our footprint in underserved areas, bringing essential services like retail, banking, and integrated property developments to more communities across the nation,” he said.
Driving Sustainable Growth
SMIC is focusing on fostering economic development through strategic investments in renewable energy and logistics. The company has taken significant steps in the clean energy sector through its stake in the Philippine Geothermal Production Co. (PGPC), which supplies 300 megawatts of geothermal steam. As part of its commitment to the Department of Energy’s renewable energy targets, SM plans to further develop geothermal concessions to support the goal of achieving 50% renewable energy by 2040.
DyBuncio also highlighted the company’s efforts to encourage circularity in energy production. SM Prime Holdings, the property arm of SM, has partnered with Japan’s GUUN Co. Ltd. to introduce a technology that reduces landfill impact by converting non-recyclable packaging into alternative fuel. This initiative aligns with the group’s broader sustainability objectives, contributing to a more sustainable future for the Philippines.
Renewable Energy and Logistics Investments
SM’s commitment to sustainability extends beyond energy. BDO Unibank Inc., the group’s banking arm, has emerged as a leader in financing renewable energy projects, having funded P898 billion in sustainable finance, including loans to 59 renewable energy projects as of December 2023.
In the logistics sector, SM’s subsidiary 2Go Group Inc. is playing a key role in enhancing transportation infrastructure, which is critical for both tourism and industrial growth. This year, 2Go launched two new vessels, MV Masigla and MV Masikap, to connect goods across 19 ports nationwide, including key hubs in Iloilo, Bacolod, Cagayan de Oro, and Manila. The move is seen as a critical contribution to the government’s medium-term growth agenda, helping improve tourism infrastructure and create inclusive economic opportunities across the country.
Despite the challenges, SM’s diversified approach positions it well for the future, with an eye on contributing to sustainable and inclusive growth. As DyBuncio concluded, “We are ready to evolve with the changing landscape and continue making a positive impact on the communities we serve.”
