SM Group to continue expansion in 2025 amid 'cautious optimism'

Sy family's conglomerate SM Investments Corp. (SM Group) said Thursday it would continue expanding its footprint by going into "underserved" sectors in the country as it expressed cautious optimism for the year ahead.

In a news release, SM Group said its optimism was anchored on the continued growth of the Philippine economy.

SM Group president and CEO Frederic DyBuncio, for his part, said that despite a challenging economic climate on the back of peso volatility and elevated inflation, "the business sector has adapted well."

Data from the Philippine Statistics Authority (PSA) showed that consistent demand sustained household spending in the third quarter with Household Final Consumption Expenditure posting a year-on-year growth of 5.1%, maintaining its level in the same quarter last 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," said DyBuncio.

To cater to growing demand, the SM Group said it continues to expand into more "underserved areas," contributing to sustainable economic development and collaborating with government stakeholders to enhance access to modern retail, financial services, and integrated property developments.

"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," said DyBuncio.

The SM Group chief added that the conglomerate will continue to invest in high-potential ventures such as renewable energy and logistics, which the group sees as fostering economic activity.

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

The conglomerate said it aims to continue to develop geothermal concessions through PGPC in support of the Department of Energy's goal of reaching 50% renewable energy supply by 2040.

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

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

Meanwhile, SM Group's banking arm, BDO Unibank is one of the largest funders of renewable energy projects.

BDO has funded P898 billion in sustainable finance, including loans to 59 renewable energy projects as of December last year.  

Moreover, SM Group, 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," said DyBuncio. — VDV, GMA Integrated News