Village Connect
The SM Group is entering 2025 with measured optimism, driven by the resilience of the Philippine economy and its own adaptability amid challenges like peso volatility and inflation.
Frederic C. DyBuncio, SM Investments’ President and CEO, highlighted how the private sector has weathered economic pressures, supported by consistent household spending. The Philippine Statistics Authority reported a 5.1% year-on-year increase in Household Final Consumption Expenditure for the third quarter, matching the growth of the previous year.
“A drop in inflation could reignite consumer confidence, opening doors for growth in consumer-driven sectors. SM is ready to meet these evolving demands,” said DyBuncio.
To address this demand, SM continues to invest in underserved areas, fostering local economies and collaborating with government efforts to improve access to retail, financial services, and property developments.
“Our nationwide expansion creates new markets and opportunities, boosting economic activity and improving community access to essential services,” DyBuncio added.
Sustainability remains a key focus. SM is investing in renewable energy through the Philippine Geothermal Production Company (PGPC), which generates 300 MW of geothermal steam. This supports the Department of Energy’s target of achieving 50% renewable energy by 2040. Additionally, SM Prime Holdings is reducing landfill waste by converting hard-to-recycle packaging into alternative fuels through a partnership with GUUN Co. Ltd.
BDO Unibank, SM’s banking arm, has funded PHP898 billion in sustainable finance, supporting 59 renewable energy projects as of December 2023.
In logistics and tourism, SM is improving connectivity. Its subsidiary, 2GO, introduced MV Masigla and MV Masikap in 2024 to enhance transport links to 19 ports, boosting trade and tourism.
“For 2025, our goal is to drive purposeful growth, empowering communities through sustainable investments,” DyBuncio concluded.
